Home Product Center Public Company Limited (SET: HMPRO) faced a challenging start to 2026, reporting a net profit of THB 1,403.97 million for the first quarter, a significant 17.77% decrease from the THB 1,707.38 million recorded in the same period last year. The slump is primarily attributed to a high base effect from 2025 and a cooling domestic economy.
Total revenue for the quarter reached THB 17,149.05 million, down 8.07% year-on-year. The core driver, revenue from contracts with customers, fell 8.58% to THB 16,041.90 million. Management noted that 1Q25 was heavily bolstered by the government’s “Easy E-Receipt” stimulus measure, which allowed for tax deductions of up to THB 30,000. The absence of such measures in 2026, combined with rising energy costs and weakened consumer confidence due to geopolitical tensions, pressured overall purchasing power.
Despite the revenue drop, HMPRO achieved an expansion in gross profit margin, which rose to 26.60% from 26.18% in the prior year. This was driven by a strategic shift toward high-margin Private Brand products and effective product mix management. Furthermore, a seasonal surge in demand for cooling appliances—specifically air conditioners and fans in March—helped mitigate earlier sluggishness through the company’s “Seasonal Agile Strategy”.
Selling and administrative (SG&A) expenses rose 2.19% to THB 3,262.40 million, representing 20.34% of sales, largely due to increased depreciation and repair costs. Conversely, finance costs decreased by 3.60% as the company successfully refinanced high-interest debentures with lower-rate issuances.
As of March 31, 2026, HMPRO maintains a network of 133 stores across Thailand and Malaysia, with no new openings. While the “Hybrid Store” model remains a focus for future growth, the company continues to prioritize stringent cost controls to navigate the current economic slowdown.
