Home Product Center Public Company Limited (SET: HMPRO) reported modest third-quarter earnings growth, leveraging gross margin expansion and lower financing costs to offset weather disruptions and sluggish consumer sentiment.
Key Financial Highlights
- Net Profit: THB 1,321.43 million (+1.37% YoY)
- Total Revenue: THB 16,772.55 million (+0.34% YoY)
- Gross Profit Margin: 27.44% (+66 bps YoY)
- Finance Costs: THB 168.40 million (-7.44% YoY)
- Capital Structure: Interest-Bearing Debt-to-Equity of 0.74x; ROE at 22.54%
For the quarter ended September 30, 2026, the home improvement retailer posted a net profit of THB 1,321.43 million, representing a 1.37% year-over-year increase. Total revenue edged up 0.34% to THB 16,772.55 million, while revenue from contracts with customers rose 0.66% to THB 15,726 million.
Top-line expansion was supported by contributions from new store openings and growing Home Service sales, though persistent economic headwinds, elevated household debt, and severe seasonal flooding across greater Bangkok temporarily depressed customer traffic.
Operationally, HMPRO widened its gross profit margin by 66 basis points to 27.44%, yielding THB 4,315.55 million in gross profit. This profitability gain was driven by disciplined pricing and an increasing sales mix of high-margin Private Brand merchandise.
Operating overhead remained well-managed, as selling and administrative expenses grew a moderate 1.46% YoY to THB 3,340.98 million. Furthermore, a strategic debt refinancing initiative successfully lowered finance costs by 7.44% YoY to THB 168.40 million, mitigating a 7.39% decline in vendor co-promotional other income.
The company maintains a solid balance sheet, reporting a return on equity (ROE) of 22.54%. Total liabilities stood at THB 40,741.84 million, featuring an interest-bearing debt-to-equity ratio of 0.74x and a total debt-to-equity ratio of 1.63x. Despite a current ratio of 0.79x, liquidity remains backed by secured credit lines.
Looking ahead, management continues optimizing its network of 134 operational stores, including recent conversions into Hybrid Store formats. The retailer is also expanding omni-channel quick-commerce partnerships and clean energy initiatives, operating solar rooftops across 103 locations.
