On Thursday at 10:28 AM (Bangkok time), the share price of Central Retail Corporation Public Company Limited (SET: CRC) expanded by 4.71% or THB 0.90 to THB 20.00, with a trading value of THB 501.34 million.
Maybank Securities (Thailand) wrote that CRC achieved a net profit of THB 2.79 billion for the first quarter of 2026. This represents a 19% increase year-over-year (YoY) and a 6% increase quarter-over-quarter (QoQ).
Excluding gains or losses from foreign exchange and derivative financial instruments, core profit increased by 12% YoY to THB 2.89 billion, surpassing market expectations by 19%. This outperformance was primarily attributed to improvements in gross margin, robust growth in the food segment, margin expansion, and a decrease in interest expenses.
According to the adjusted financial statements—which classify Rinascente as a discontinued operation following its sale on November 19, 2025—total sales for 1Q26 remained flat YoY. Growth in the food segment was offset by declines in both the fashion and hardline segments. Same-store sales growth (SSSG) was reported at -2% overall, comprising -3% in Thailand and -1% in Vietnam. However, SSSG in Vietnamese dong (VND) registered a strong growth of +11%, driven by robust sales during the Tet festival.
Gross margin improved by 54 basis points YoY to 54.1%, supported by margin expansion in both the food and fashion segments. This was attributed to shifting the food product mix toward higher-margin items, as well as effective discount and inventory management in the fashion segment. Interest expenses decreased by 23% YoY, reflecting lower debt costs.
In the fashion segment, sales declined by 3% YoY, with SSSG at -7%. This was due to soft consumer purchasing power and a high comparison base from the previous year’s Easy E-receipt program. One Robinson department store was closed following the end of its lease, but 24 new specialty and brand shops were opened on a YoY basis.
Sales in the hardline segment fell by 2% YoY, with SSSG at -4%, due to a high base from the Easy E-receipt program, while Thai Watsadu’s SSSG was slightly negative. Nevertheless, two new Thai Watsadu branches were added compared to the previous year.
The food segment witnessed a 6% YoY increase in sales, underpinned by a SSSG of +2% (with Thailand at +6% and Vietnam at -2%). This growth was attributed to stockpiling among consumers concerned about Middle East tensions. The company expanded its footprint with nine new Tops supermarkets, 23 Tops Daily stores, one Go Wholesale store, two GO! Hypermarkets, and one mini go! store, all on a YoY basis.
From April 1 to May 10, SSSG turned slightly positive, driven by demand for stockpiling in the food and hardline segments, while the figure for Thai Watsadu also reverted to slightly positive. However, SSSG in the fashion segment remained slightly negative, reflecting subdued consumer spending.
Maybank maintains a ‘Hold’ recommendation on CRC, with a target price of THB 18.20 per share, based on a discounted cash flow (DCF) valuation, while further details will be provided following the analyst meeting scheduled for May 15, 2026.
