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Siam Makro Plc (MAKRO), Southeast Asia’s largest cash and carry retail operator, has come out to report an 115% increase in revenues during the 2nd quarter 2022, although its profitability fell short and rose by a mere 22%.
MAKRO, which is merged with hypermarket operator Lotus’s last year, has been in the process of merging the 154 outlets of Makro cash & carry, with the 2661 stores operated by Lotus’s, said that its merger has helped push the revenues up sharply.
MAKRO said that during 2nd quarter of 2022, the company and its subsidiaries had total revenues of 118.46 billion Baht, a rise of 63.51 billion Baht or 115.6% compared to the same quarter of the previous year.
During the second quarter of 2022, MAKRO and its subsidiaries had a net profit of 1.57 billion Baht or a 0.15 Baht per share, an increase of 286 million Baht or 22.2% year-on-year, resulting from the wholesale business’s net profit that grew 5.3% to of 1.36 billion Baht, compared to the same period of last year, and the retail business’s net profit that amounted to 217 million Baht.
The cash & carry business is categorized as ‘wholesale’ while the operation of Lotus’s is categorized as retail.
As for the 6-months ending June 2022, MAKRO said that its total revenues were at 229.68 billion Baht, or an increase of 118.63 billion or 106.8% from the same period of last year, mainly from a consolidation of the retail business’s sales and a sales growth of the wholesale business. Both business units had a growth in sales by approximately 6.8% year-on-year.
MAKRO said that for the 6-months ending June the firm had a net profit of 3.62 billion Baht, or a rise of 19.9% when compared to the same period of the previous year.
MAKRO’s wholesale business continued to remain stable with sales rising by as much as 10.4% year-on-year to 60.71 billion Baht, while data for retail business was not given as the merger of the retail business with that of wholesale was undertaken in October last year. The retail business reported revenues for Q2 2022 at 57.75 billion Baht.
The retail business under Lotus’s has been shifting focus away from being a pure hypermarket to being a retail outlet by letting out space in the stores and MAKRO said that the occupancy rate for the nearly 1 million square meters was at about 90% for both its operations in Thailand and Malaysia.
MAKRO also came out to say that it was looking to pay an interim dividend of 0.18 Baht a share for its operations during the 6-months ending June 2022.