Central Retail top performs in 2022, sweeping a revenue of THB 236,245 million or 21% growth with a net profit of THB 7,605 million or 2,648% growth, and announces dividend of 0.48 Baht per share.
Mr. Yol Phokasub, Chief Executive Officer of Central Retail (SET: CRC) stated, “Central Retail has been driving the business with the CRC Retailligence strategy, resulting in leaping growth with Q4/2022 performance showing a revenue of THB 65,147 million (+11% YoY), EBITDA THB 9,497 million (+18% YoY) with a net profit of THB 3,417 million (+39% YoY), outperforming 2022 performance targets by generating a total revenue of THB 236,245 million (+21% YoY), EBITDA THB 30,049 million (+50% YoY) with a net profit of THB 7,605 million (+2,648% YoY). The company aims to deliver a dividend to shareholders at 0.48 baht per share with an approval pending at the Annual General Meeting.
Central Retail’s success is powered by the strength and capabilities of its businesses in driving outperforming growth. This includes the transformation in the fashion category into ‘New Omni Fashion’ that delivers on total solutions, which further unlocks new and elevated business strength. Moreover, in the hardline category, Thai Watsadu now marks its No. 2 position in Thailand with a total of 70 stores across 42 provinces nationwide. Tops continues to reaffirm its No. 1 position in Thailand’s food retail, reinforcing its leadership under the new concept ‘Every Day Discovery’ with plans to open 15 more branches. Robinson Lifestyle Mall continues to expand branches, achieving the #1 ‘Lifestyle and Experiential Community’ mall with the most expansive coverage across provinces in Thailand. Additionally, Central Retail has also built a strong financial foundation under the 3C strategy, which includes Cost, Capex and Cash Flow. Cost focuses on expense management to achieve maximum efficiency; Capex focuses on effective investment in strategic business; and Cash Flow focuses on expanding capabilities in managing and increasing cash flow to make the company ‘fit and firm’, speeding up business growth. As such, Central Retail’s sales in 2022 can be divided by business category accordingly: 40% from the food category, 34% from the hardline category and 26% from the fashion category, and by country accordingly: with 69% from Thailand, 24% from Vietnam and 7% from Italy. Moreover, omnichannel sales have witnessed 15% growth from the previous year contributing to 18% of the total sales.
Most recently, Central Retail has also achieved strategic success by spinning off MEB Corporation (“MEB”), which is a company under Central Retail. MEB had an initial public offering (IPO) and listed on mai (Market for Alternative Investment) on 14 February 2023. And as of February 27, 2023, MEB’s market cap reached THB 12,075 million, making it the No. 2 in the service category in the mai.
Additionally, Central Retail has achieved significant success in Vietnam, securing its position as the largest international retailer in Vietnam as the No. 1 hypermarket and No. 2 in lifestyle mall covering a total of 40 out of 63 provinces in Vietnam. The company reinforces its strength in the food category with 3 key formats such as GO! Hypermarket, go! Supermarket and Tops market to cater to every need of Vietnamese consumers. Following this, Central Retail continues to expand its business in Vietnam as it is considered a key market with high growth potential and business readiness in terms of economic growth and its majority of young population with high spending power, along with the urbanisation and expansion of modern trade. With Vietnam’s promising future, Central Retail continues to accelerate its investment plans with a total of THB 50,000 million over 5 years to expand its empire in Vietnam, collaborating across the company’s ecosystem to strengthen its leadership in the food, non-food, and property categories in Vietnam. The company plans to launch 5-7 additional branches of GO! Malls next year and expand Central Retail’s presence to cover 57 provinces in Vietnam, setting to achieve sales target of THB 150,000 million in Vietnam within 5 years.
“Central Retail moves ahead towards The Next Sustainable Growth across all business categories and markets, whilst remaining committed to enhancing the quality of life for societies, communities, and the environment. Moving forward, Central Retail is confident it will continue to drive leaping growth with the positive factors in the retail and service industry, including the reopening of borders and increasing number of international travellers in Thailand, Vietnam, and Italy, which in turn will promise a boost of large sum of funds into the economy and a direct benefit to our businesses under Central Retail,” concluded Mr. Yol.