TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
After doubling its margin in 2023, Bibli is optimistic about 2024
Change Size
P
T Global Digital Niaga Tbk (“Blibli”, IDX: BELI) has announced its full year financial results for the year 2023, evidently cementing itself as a pioneer and leading omnichannel commerce and lifestyle ecosystem in Indonesia.
“Reflecting on 2023, our strategic agenda is comprehensive, targeting the expansion of product assortment, the enhancement of value-added services, the advancement of technology and the amplification of ecosystem synergy. Central to our profitability strategy was the optimization of our product mix, prioritizing higher-margin products and aligning third-party seller sales rates with our profitability road map,” said Kusumo Martanto, CEO and Co-founder of Blibli.
The total processing value (TPV) grew by 17 percent in 2023 year-on-year (yoy) to Rp 72.1 trillion (equivalent to US$4.52 billion), mainly driven by the increased performance of online travel agents (OTAs) business under tiket.com platform and increased performance of Blibli’s physical consumer electronics stores.
Specifically, Blibli has continued to strengthen its omnichannel strategy by adding 40 consumer electronics stores throughout 2023, currently operating 166 consumer electronics stores, as well as 65 premium supermarket outlets by the end of 2023.
In line with expanding its network, Blibli is currently building a new warehouse in Marunda, West Java, with construction progress reaching ~60 percent by the end of 2023, and is projected to begin operating by the end of 2024 in stages.
“Throughout 2023, we focused on improving our profitability performance. This was done by rationalizing our product categories mix across the first-person retail segment and adjusting the fees of our marketplace business, which resulted in significant improvement of our gross profit generation and a healthier gross margin. In addition, our continuous cost efficiency steps were implemented, especially in the advertising and marketing areas, which has further reduced losses. We are confident this positive trend will continue in 2024,” echoed Ronald Winardi, CFO of Blibli.
Gross profit before discount (GPBD) in all business segments recorded an increase yoy, which was mainly supported by the optimization of the product category mix as well as discounts and promotions in the first-party retail segment, along with strong performance from sales of consumer electronic products to its institutional clients. As a result, the combineed take rate also increased from 4.2 percent to 5.1 percent in 2023 yoy.
As a result, consolidated gross margin also recorded strong growth from 8.0 percent in 2022 to 16.3 percent in 2023, an increase of 830-bps yoy, mainly contributed by the gross profit expansion across all business segments.
Meanwhile, Blibli was also able to continue improving its cost structure, reflected by a lower percentage of consolidated operating expenses to TPV from 10.2 percent in 2022 to 8.3 percent in 2023. This resulted in a 310-bps increase in consolidated EBITDA to TPV percentage performance, from -7.8 percent to -4.6 percent in FY23.
The Blibli Tiket Rewards program was also enhanced, including expanding the earn and redemption universe to offline retail locations, driving traffic and offering unprecedented convenience and benefit to consumers.In 2023, Blibli Tiket Rewards was further integrated across all platforms into the Blibli Tiket ecosystem (including Blibli, tiket.com, Ranch Market and consumer electronics stores). The increase in cross-selling within the ecosystem ultimately resulted in more efficient growth by reducing advertising and marketing costs and lowering customer acquisition costs.
“We enhanced our service offering by expanding existing services, notably achieving full integration of the Ranch Market retail network into the Click & Collect service and releasing new augmented reality (AR) technology in certain product categories. These advancements combined digital convenience with the tangibility of physical interactions—a hallmark of our strategy—to offer our customers a unique and enjoyable shopping experience,” added Kusumo.
Blibli’s execution of an omnichannel strategy is a continuation of the company’s long-term commitment to seamlessly integrate the online and offline worlds through technological innovation. By building bridges with businesses and institutions that can trust in their vision and leadership, the result in 2023 further strengthened the position of an improved shopping experience for their consumer base and boosted the company’s business performance and profitability, providing added value for all stakeholders.
Source:Blibli
