CP All net profit to grow 9% YoY in Q1 2023

This is due to increased tourism and domestic consumption.

Thailand 7-Eleven operator CP All is expected to see a 9% year-on-year (YoY) growth in net profit to reach around $109.4m (THB3.76b) in the first quarter of 2023 on the back of the recovery of domestic consumption and tourism.

In a report, Maybank said the expected net profit reflects a 20% quarter-on-quarter (QoQ) growth.

Same-store sales growth (SSSG) in 7-Eleven will remain high at 9% because of the rise in consumer traffic and ticket size, whilst the company’s other subsidiary Makro and Lotus’s are seen to see a 12% and 1% SSSG, respectively.

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“This should result in CPALL's total sales increasing 11% YoY but decreasing 1% QoQ due to seasonal effects,” Maybank said.

The company’s gross margin will reach 21.7% due to selling price adjustments implemented since last year and an “increased proportion of high-margin products.”

Maybank added that expenses are seen to increase due to the rise in electricity costs. Interest expense is also expected to expand by 27% YoY to about $139.6m (THB4.8b) because of interest expense and early debt repayment fees for Lotus’s.
$1 = THB34.37