Thailand’s Central Retail Says Revenue Hit $6 Billion Last Year Despite Prolonged Pandemic

Thailand’s largest retailer released quarterly results that show it’s well on the path to recovery from the pandemic.

Central Retail said its revenue rose to 58.8 billion baht ($1.8 billion) in the fourth quarter last year, a 15% jump from the same period in 2020. And that strong showing lifted the company’s total revenue for the year to 195.6 billion baht ($6 billion), compared to revenue of 194.3 billion baht in 2020.

After reporting losses for two straight quarters, Central Retail swung to a profit of 2.46 billion baht in the fourth quarter that lifted its earnings for the full year to 277 million baht.

The company derives the majority of its sales from its domestic market where it managed to achieve a higher revenue than pre-pandemic levels in spite of the absence of foreign tourists.

Central Retail’s CEO Yol Phokasub said the company was put through “rigorous resilience tests” last year. “With anti-fragility in the DNA, we were able to thrive amid the widespread uncertainty to emerge first and stronger,” he said in a statement.

Controlled by the billionaire Chirathivat family, Central Retail went public in February 2020 through a share sale that raised $2.5 billion. Central Retail is the retail arm of the Central Group, which has interests in real estate, retailing, hotels and restaurants.

Last year, Central Retail said it was focused on its “hardline segment,” which includes electronics, construction materials, and DIY products under retail banners Thai Watsadu, Baan & Beyond, Power Buy, and Nguyen Kim. The unit managed to grow its revenue to levels higher than the pre-pandemic era by 26%.

The group’s digital business also has helped to offset the downturn, with the company’s omnichannel platforms generating 20% of total revenue last year.

In early February, Central Retail unveiled an ambitious plan to invest 100 billion baht ($3.03 billion) to expand its businesses and increase revenue by 2.5 times over the next five years. Central Retail is aiming to boost all of its business segments, including food, fashion, hardline, property, and new businesses.

And it’s a strategy that’s already winning support. Vatcharut Vacharawongsith, an analyst from RHB Securities, believes Central Retail’s plan to develop its omnichannel platform and explore new growth pillars can support its targets.

“We now think it can deliver robust earnings growth over 2022-2023 on improving post-lockdown operations in all segments, accelerated business expansions, and profit margin hikes,” said Vacharawongsith in a research note released in February.