Country Group Development Public Company Limited (CGD) reports its Q3/2021 operating results and unveils its capital strengthening progress. Despite the challenges posed by COVID‐19 pandemic, CGD today announced it has successfully completed the first phase of the capital strengthening process, debt reduction strategy and is now well positioned for long-term growth.
The company revealed Q3/2021 operating results with total revenue of THB 629.7 million and for the nine-month period ended September 30, 2021, total revenue was THB 2,654.5 million, an increase of 19.4% year on year. Sale of the Four Season Private Residences remained the key contributor to the overall performance and maintained its high profit margin. Amidst the volatile business environment, the company demonstrated strong commitment to balance sheet and cost control management.
The hospitality business struggled during the quarter due to a new wave of COVID-19 which resulted in extended lockdowns that limited the hotel operations for most of the quarter. Stringent cost control policies were implemented during this short-term period.
The company reported net loss that mainly attributed to accounting loss from foreign exchange rate of THB 720.1 million which is non-cash and does not affect the group’s cash flow. The Thai Baht has been strengthening subsequently after the third quarter ended.
However, CGD is well positioned to capture higher profit margin during the recovery period and going forward with nearly THB 15 billion worth of ready to transfer assets to be gradually recognized in the following quarters.
Mr. Ben Taechaubol, Chief Executive Officer states that “This milestone marks the successful completion of stage 1 (51% divestment on 11th November 2021) of the Company’s plan to divest Urban Resort Hotel Co Ltd and Waterfront Hotel Co Ltd to its affiliate Bound and Beyond PCL. Proceeds from the transaction will be used towards debt repayment as part of its accelerated plan to reduce debt by 88%, and strengthen CGD financial position.”