Bukalapak Pockets Net Profit of 14,5 Trillion Rupiah in the First Quarter of 2022

PT Bukalapak.com Tbk (IDX: BUKA) pocketed a net profit in the first quarter of 2022 of IDR 14,5 trillion from the same period last year which lost - IDR 323,8 billion. Bukalapak also recorded revenue growth of 86% to Rp787,9 billion.

Based on financial statements In the first quarter of 2022, Bukalapak also recorded an operating profit of Rp. 14,42 trillion from the previous loss of -Rp. 327,9 billion. "[This profit] was mainly due to profit from investment in PT Allo Bank Tbk (AlloBank)," said Bukalapak's official statement.

However, the company's EBITDA is still minus Rp372 billion with a ratio of adjusted EBITDA against TPV rose from -1,2% to -1,1%.

Breakdown by line of business, Partners are still the main mover Bukalapak revenue growth by 227% to Rp471,8 billion in the first quarter of 2022 from the same period in 2021, which is Rp144,3 billion.

Mitra Business also still leads the contribution to total revenue with a share of 60%, up from its contribution in the first quarter of 2021 which was around 34%. The number of Bukalapak Partners shot from the position of 6,9 million as of December 2020 to 13,1 million as of March 2022.

Furthermore, Open Procurement contributed 4,7% or equivalent to Rp37,5 billion in the first quarter of 2022. However, its revenue increased 52% on an annual basis. Meanwhile, the Marketplace business, which contributed the second largest to Bukalapak's total revenue, only grew by one digit or 9% to Rp278,5 billion in this period.

The company's Total Processing Value (TPV) in the first quarter rose 25% to Rp34,1 trillion on an annual basis. Meanwhile, 74% of the total TPV was contributed from tier 1 external transactions. The Mitra business line achieved a 78% growth to Rp 17,3 trillion. Its contribution to total TPV rose 35% to 51% in the first quarter of 2022.

"In cities outside Indonesia's tier 1, penetration all-commerce, the trend of digitizing warungs and traditional retail stores continues to show strong growth," he added.

Currently, Bukalapak's cash position as of March 31, 2022 reaches Rp. 20 trillion.

Business diversification

Bukalapak's diversification into digital banks through its investment in AlloBank (IDX: BBHI) is reaping results. It is known, Bukalapak is involved in its strategic investment into the digital bank owned by the CT Group. In action rights issue AlloBank some time ago, Bukalapak annexed 11,49% of AlloBank's shares.

In fact, not long after, Bukalapak extended its synergy with CT Group, as well as Growtheum Capital Partners (AlloBank investors) through the establishment of a grocery platform joint venture. AlloFresh. The investment value disbursed to develop the platform is Rp. 1 trillion.

This diversification could be Bukalapak's strategy to maintain performance growth, considering its position is no longer strong in the Marketplace segment. Partners' business growth space is also still very large considering that there are still many small business actors who have not been exposed to digital access and financial services in Indonesia.

Nielsen's survey of 1.800 warungs and 1.200 credit kiosks identified Mitra Bukalapak as the O2O market leader with a penetration of 42% compared to O2O players who have 2,5 times more users in this survey.

On the other hand, business e-procurement Open Procurement in the B2B segment has not contributed significantly to Bukalapak's financial performance. However, there is an opportunity to grow considering the activities procurement in Indonesia was blocked due to the Covid-19 pandemic. Also there are still many companies that are used to relying on procurement conventionally.