Heaptalk, Jakarta — Indonesia’s e-commerce Bukalapak (issuer code: BUKA) recorded a net loss attributable to the parent entity’s owners of about US$38 million, approximately Rp545.97 billion as of September 2024, marking a 23.04% decrease compared to Rp792.78 billion during the same period last year.
BUKA recognized that its third quarter has been the lowest momentum for the company this year due to the seasonality of the business, which affects both the online-to-offline (O2O) and marketplace divisions. Revenue for 9M24 increased by 2% YoY, becoming Rp3.4 trillion. Its EBITDA improved to -Rp68 billion, and Adjusted EBITDA grew by 55% to -Rp193 billion compared to the same period in 2023. Nevertheless, Adjusted EBITDA for Q3 2024 remained negative at -Rp168 billion, below the company’s objective to achieve profitability this year.
“Our Q3 2024 performance indicated that we have been unable to reverse this trend in several businesses. This does not align with the company’s long-term strategy for sustainable growth. Therefore, we are making transformations to our operational approach and in the business segments we focus on going forward,”
In the past three years, the company realized that its market has shifted substantially with very competitive dynamic. Bukalapak has experienced operational costs exceeding revenue contributions across various businesses, inconsistent with its long-term strategy of achieving profitability and sustainable growth.
Indonesia’s startup has been re-evaluating the prospects of several business segments and has decided that restructuring is required to achieve the company’s strategic objectives. BUKA has determined to focus on the following core businesses: Mitra Bukalapak, Gaming, Investment, and certain retail services. This restructuring will result in layoff determination across the business, which will be implemented over two quarters in 2025.
“BUKA has executed multiple strategic measures. The losses and industry challenges faced by various business segments or subsidiaries over the past three years have prompted BUKA’s management to refocus our effort on selected core businesses,” CEO of Bukalapak, Willix Halim, said.
The Board of Directors presented the proposal for the Corporate Action Plan at their Joint Meeting on August 30th, 2024. The Board of Commissioners approved it in separate Circular Resolutions in the Meeting, which was last signed on October 15th. The company will implement the plan in stages under applicable laws and regulations, with the entire process expected to be completed by the second quarter of 2025.
