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CP All Plc (CPALL), the major shareholder of Siam Makro Plc (MAKRO) and more than 13,000 7-Eleven stores nationwide, has come out to report a net profit of just over 3 billion Baht for the operations during the 2nd quarter of 2022, while expects growth for the year to rise in line with the economy.
CPALL, said that its net profit for Q2 2022 rose by 37.2% during the quarter to 3.004 billion Baht against 2.19 billion Baht that it recorded during the same period of last year.
CPALL, which holds nearly 35% of MAKRO (which runs Makro Cash & Carry and also Lotus’s) said that the better earnings were due to the recovery in operating results, especially, the convenience store business that received positive factors following the increased economic activity, while Makro also performed better, with earnings per share based on the consolidated financial statements of 0.31 Baht.
During the 2nd quarter of 2022, the company had total revenue of 213.65 billion Baht, an increase of 55.2% from the same quarter of the previous year due to an increase in revenue from sales and services of the convenience store business and the wholesale and retail business of consumer products, whereas Makro was still able to maintain the growth rate of sales and service income, together with the revenue recognition of Lotus’s.
CPALL said that it foresees sales and service income in 2022 to grow from the growth rate of new store sales and the average sales growth rate from existing stores, which is expected to be at a level that is close to the rate of gross domestic product growth.
Although the Thai economy has recovered after the outbreak of COVID-19, the company still must monitor the economic situation as it may have negative impacts such as rising energy and commodity prices which affect the cost of goods, transportation, and the cost of living, including the purchasing power of consumers.
CPALL plans to invest in opening about 700 new convenience stores in 2022 and expects to spend about 11.5-12 billion Baht in the investment, divided into 3.8-4 billion Baht in new stores, 2.4-2.5 billion Baht in renovating existing stores, 4-4.1 billion Baht in new projects, subsidiaries, and distribution centers, and 1.3-1.4 billion Baht in fixed assets and information systems.
During the 2nd quarter, the company’s convenience store business opened a total of 180 new stores, resulting at the end of Q2 2022, the company had a total of 13,433 stores nationwide, divided into:
- 6,530 company branches (49%), 136 net new stores in this quarter
- 6,903 SBP and territorial sublicense stores (51%), 44 net new stores, most of the stores are independent stores, accounting for 86% of total stores.
- The rest are shops in PTT gas stations.