Thailand's CP ALL second-quarter profit growth slows to 3 percent, misses estimates

 

The logo of CP All is pictured at its office building in central Bangkok, Thailand, February 29, 2016. CP All Pcl, Thailand's largest convenience store chain, said on Monday its annual net profit rose 34 percent from a year earlier, as it expanded its store network and lowered financial costs. REUTERS/Chaiwat Subprasom

 

BANGKOK (Reuters) - Thailand's largest convenience store operator, CP ALL Pcl <CPALL.BK>, reported a slowdown in net profit growth to 2.8 percent in the second quarter, its weakest quarterly results in years.

 

CP ALL booked net profit of 4.78 billion baht ($144.2 million) in its April-June quarter versus 4.65 billion baht in the same period a year ago, missing a Thomson Reuters I/B/E/S estimate of 5.51 billion baht.

 

Profit growth slowed markedly from the second quarter of 2017 when profits rose by 10.8 percent.

 

Gross margin declined to 27.7 percent from 28.3 percent a year ago due to higher sales of low margin products such as cigarettes, alcohol and game cards.

 

CP ALL, which has over 10,000 convenience stores nationwide, said operations were "decent," reporting revenue of 129.7 billion baht, up 7.5 percent from a year ago.

 

Administrative and distribution expenses rose 9.6 percent from the same time last year to 20.76 billion baht due to an increase in the minimum wage, higher distribution cost and higher electricity unit costs.

 

It forecasts growth to be in line with the Thai economy.

 

CP ALL, controlled by Thai billionaire Dhanin Chearavanont, stuck to its plans to add 700 new stores this year, with a goal of reaching 13,000 stores by 2021.

 

It projects capital expenditure of 9.5 billion to 10 billion baht for store expansion, renovation and investment in new projects.

 

($1 = 33.1600 baht)

 

(Reporting by Chayut Setboonsarng; Editing by Adrian Croft)

 

-- © Copyright Reuters 2018-08-10

You can not put 10 kg of shyt into a 5 kg bag.

What is CP doing to reduce plastic waste? Correct, nothing! You buy 5 things at 7/11 and they give you 3 plastic bags. The rich are getting richer and move their money out of the country while Thailand is becoming a plastic/garbage dump. Same applies to Big C etc.  All of the rich families are taking ZERO action to reduce plastic waste.  Makes me wonder if they care about Thailand or only about profits.

Could this be due to my reluctance to ever enter a 7-11 if there is an alternative? No, probably not. But wouldn't it be nice if the mega-wealth of this family was shared just a little bit more equally with the poor kids that work for them. 

1 minute ago, Nickymaster said:

What is CP doing to reduce plastic waste? Correct, nothing! You buy 5 things at 7/11 and they give you 3 plastic bags. The rich are getting richer and move their money out of the country while Thailand is becoming a plastic/garbage dump. Same applies to Big C etc.  All of the rich families are taking ZERO action to reduce plastic waste.  Makes me wonder if they care about Thailand or only about profits.

You beat me to this by a couple of minutes.

I can see no reason to wonder about this, it's bloody obvious.

On the 7 Eleven website, nearly two years ago under their alleged Corporate Social Responsibility section CP said how they were starting to ask customers who made a single item purchase if they wanted a bag. Can anyone say they have been asked that in a 7 Eleven anywhere? No, me neither.

 

Cheap, radial plan: Stop giving away plastic bags free.

Try selling cloth bags at cost price - it will work out in the long run. Even if it has the 7 Eleven logo on it. I can dream - it might even start a cloth bag sponsorship war between retail brands!

 

14 minutes ago, bluesofa said:

You beat me to this by a couple of minutes.

I can see no reason to wonder about this, it's bloody obvious.

On the 7 Eleven website, nearly two years ago under their alleged Corporate Social Responsibility section CP said how they were starting to ask customers who made a single item purchase if they wanted a bag. Can anyone say they have been asked that in a 7 Eleven anywhere? No, me neither.

 

Cheap, radial plan: Stop giving away plastic bags free.

Try selling cloth bags at cost price - it will work out in the long run. Even if it has the 7 Eleven logo on it. I can dream - it might even start a cloth bag sponsorship war between retail brands!

 

They never ask me if i want a plastic bag. Instead,  9 out of 10 times I have to argue with them that I don't need so many plastic bags. lately I hardly accept any bags because it makes me very sad to see what a garbage dump this country is becoming. I always try to explain to them that plastic is very bad for their beloved country. Then they give me this look as if they want to say: you don't want a free bag?? I am sure that none of their staff have been made aware that they have to reduce plastic waste. The vast majority of the public don't see or feel the need to reduce plastic waste. This issue can only be dealt with at goevenment level. But don't count on that. 

Disgustingly greedy vile company

4 minutes ago, Nickymaster said:

They never ask me if i want a plastic bag. Instead,  9 out of 10 times I have to argue with them that I don't need so many plastic bags. {snipped}

I always tell them I don't want a bag when I buy only a bottle of milk.

Once I noticed the girl serving me went to pull a plastic bag out of the packet until I stopped her. She did however then continue pulling the bag out of the packet and threw it straight into the bin. Sigh.

 

45 minutes ago, Lungstib said:

Could this be due to my reluctance to ever enter a 7-11 if there is an alternative? No, probably not. But wouldn't it be nice if the mega-wealth of this family was shared just a little bit more equally with the poor kids that work for them. 

Good point but Thailand still has a class system so no need in the eyes of the elite (and the underprivileged). Very sad.

Edited August 10, 20187 yr by Nickymaster

4 hours ago, webfact said:

CP ALL, controlled by Thai billionaire Dhanin Chearavanont, stuck to its plans to add 700 new stores this year, with a goal of reaching 13,000 stores by 2021.

If those new stores are in surrounding ASEAN, they would be a great investment for CP.

Placing them all or a majority in Thailand will have greater profitability and growth risks.

From the Chairman and CEO Message it appears to be the former.

https://www.cpall.co.th/en/message-from-chairman-and-ceo/

Of some side interest: "the Company has also been certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption" initiated in 2010 http://www.thai-iod.com/en/projects-3-detail.asp?id=1

The CAC has links to The National Anti-Corruption Commission (NACC) and the Center for National Anti- Corruption. http://www.anticorruption.in.th/2016/en/ourpartners1.php

Maybe their customer base is starting to croak because of high blood pressure caused by the MSG they put into their products by the boatload. 

46 minutes ago, DrTuner said:

Maybe their customer base is starting to croak because of high blood pressure caused by the MSG they put into their products by the boatload. 

Its not only the boatloads of MSG.

The main product that all 7/11 stores sell is - Sugar.

The bloody stuff is in everything, and in huge amounts.