CP Axtra Public Company Limited (SET: CPAXT) has reported a robust start to 2026, with a first-quarter net profit of Baht 2,793 million, representing a 5.7% year-on-year increase. This bottom-line growth was primarily underpinned by effective operating cost management, a notable reduction in finance costs, and the performance recognition of Lucky Frozen (LFG).
Total revenue for the quarter reached Baht 136,050 million, climbing 4.7% from the Baht 129,950 million recorded in Q1 2025. Revenue from the sale of goods rose 4.8% to Baht 130,733 million. The wholesale segment led this expansion with a 5.9% revenue increase, driven by new store openings and the scaling of “Omni Channel” sales—which now account for 22% of sales—through platforms like Makro PRO. Meanwhile, the retail segment (Lotus’s) grew by 3.4%, benefiting from festive timing and government stimulus measures in Malaysia.
Despite the top-line growth, gross profit margins from sales dipped slightly to 14.1% from 14.5% in the previous year. Management attributed this pressure to a higher sales mix of commoditized products as customers stocked piles amid geopolitical tensions in the Middle East. Additionally, margins were impacted by short-term clearance stock expenses in the wholesale division and inventory loss recognition in the retail sector.
Crucially, CPAXT offset these margin pressures through disciplined operational efficiency. Distribution and administrative expenses as a percentage of total revenue fell to 12.8% from 13.1%, as the company successfully kept expense growth (2.0%) well below revenue growth. Furthermore, finance costs dropped 8.1% to Baht 1,290 million following the repayment of maturing long-term borrowings.
Amid challenging conditions, including domestic and oversea economy, the company continued to implement strategic plans aligned with each operating environment. As a result, same-store sales growth (SSSG) for the wholesale business grew by 0.6% YoY.
Looking forward, CPAXT is accelerating its transition into a “Retail Tech” entity, leveraging its 2,600-store footprint to optimize last-mile delivery while utilizing AI-driven personalization to enhance customer engagement. This strategic focus, combined with the development of “Happy Mall” community hubs, positions the company for resilient long-term growth.
