CP ALL PCL (PCL) announced its second-quarter financial report through the Stock Exchange of Thailand (SET), stating that the sale and service revenue was impacted by the government’s measures to contain the COVID-19 pandemic.
Kriengchai Boonpoapichart, the CPALL chief financial officer, said the company saw a drop in the second quarter of 2020 both in revenue and profit.
CPALL’s total revenue during the second quarter of 2020 was down 10.6 per cent to 128,027 million baht year-on-year, while net profit was down 39.8 per cent to 2,887 million baht.
In the first half of 2020, CPALL gained total revenues amounted to 273,881 million baht, decreased by 2.8 per cent year-on-year. Net profit was 8,532 million baht, declining by 19.2 per cent year-on-year.
Earnings per share reported in the consolidated financial statements were 0.89 baht in the first half of 2020.
Convenience store
In the second quarter, there were 106 new CPALL stores of all types including corporate, store business partner (SBP) and sub-area.
The total amount at the end of the second quarter was 12,089 stores nationwide (45 per cent of corporate stores and 55 per cent of SBP and sub-area stores).
Majority of the stores were stand-alone, making up 85 per cent of the total stores, while the others were in PTT gas stations.
CPALL reportedly generated a revenue of 70,359 million baht, decreased by 17.0 per cent year-on-year, from this section. The average sale was 66,950 baht per store on a daily basis.
However, the convenience store business had a contracted SSSG at 20.2 per cent in which average spending per ticket was around 79 baht. There were 841 customer visits per store per day.
The lower number of customers resulted from the government’s control measures to limit the spread of COVID-19.
CPALL shares
Even though CPALL’s financial result in the second quarter was lower than the previous period mainly due to COVID-19 impacts, it turned out to be higher than what Nomura securities expected as they predicted the company’s net profit to drop by 50 per.
Nomura recommends ‘buying’ CPALL shares at the target price of 75 baht per share as they take in CPALL’s recovery in the second half of 2020.
CPALL shares stood at 68.50 baht per share on Thursday (11 a.m.), decreased by 0.25 baht or -0.36 per cent from the opening price at 68.75. The transaction value was at 1234.16 million baht on Tuesday.
