CRC posts higher profit, plans further expansion

Central Retail Corporation (CRC) saw profit growth of 11% in 2019 to 12.4 billion baht on revenue of 223 billion baht, an uptick of 8%.

CRC aims to fully implement a five-year strategic plan to maintain average income growth of 8-10% each year and earnings before interest, tax, depreciation and amortisation growth of 10-11%, while strengthening omni-channel platforms.

CRC was also recently fasttracked to be included in the SET 50 and MSCI Global Standard indices.

“We ended 2019 with solid revenue and earnings growth from factors of robust business platforms in every country, whether in Thailand, Vietnam or Italy,” said Yol Phokasub, chief executive of CRC. “We increased market share in every product category, including fashion, food and hard goods, while we also grew our customer base in each market with our strong infrastructure.”

The company saw sales through omni-channel platforms grow 56% in 2019 and expects sales for the segment to account for more than 10% of total sales in 2020.

Mr Yol said this year the company will have an investment budget of 18 billion baht (excluding mergers and acquisitions) and wants to expand in Thailand, Vietnam and Malaysia.

In Thailand, CRC plans to open various new outlets, including three Robinson Lifestyle branches, seven Thai Watsadu stores and three Baan and Beyond stores, as well as expanding food and specialist stores.

In Vietnam, the company expects to open an additional six Big C/Go! stores, renovate four stores and expand non-food businesses such as LookKool, Kubo and SuperSports.

In Italy, CRC will refurbish stores in Florence and Rome, with a focus on attaining leadership in the lifestyle luxury segment.

“After many uncertainties in both the global and domestic economies this year, whether from the strong baht, the coronavirus epidemic, reduced tourist arrivals or declining consumer confidence, Central Retail must exercise caution in business operations, closely monitor various issues and use technology to manage costs effectively,” Mr Yol said. “Our multi-category and multiformat platforms give us flexibility and adaptability to cope with rapidly changing and volatile situations.”