Bangkok--28 Jul--Big C Supercenter
Big C Supercenter PCL demonstrates strong performance during the second quarter of 2014 with satisfactory retail sales growth by 3.8%, rental and service income grew 8.1% – and strong net income growth at 20.4% leading to net income of 1,889 million THB.
Ms. Rumpa Kumhomreun, CFO and Vice President for Accounting and Finance of Big C Supercenter PCL, reveals that “Big C’s 2014 second quarter performance exhibited strong growth in all dimensions. Retail sales grew to 31,141 million THB (+1,151 million or +3.8% over the same period last year). Rental and service income grew to 2,387 million THB (+178 million or +8.1% over the same period last year). The Company’s gross profit in Q2 2014 was 4,737 million THB, +485 million THB or +11.4% from the same period last year. Net income to equity holders of the company for the Q2 2014 was 1,889 million THB, an increase of 320 million THB or 20.4%
over the same period last year. All of these increases result from successful marketing activities, continued store expansion, strong rental and service income performance, continued supply chain developments, on-going cost optimization and productivity enhancement initiatives, and lower debt level and finance costs.
The challenging economic and political conditions of Q4 2013 and Q1 2014 continued into Q2 2014. Nevertheless, Big C was still able to attract customers with its targeted and seasonal marketing campaigns. A number of campaigns took place during the quarter such as Songkran, Back to School, Brazilian quality products imports in the same period as the World Cup Festival. Big C also supported consumers' cost of living by being the only retailer to offer Blue Flag promotion of cooked food in our Food Courts during June as well as fixing the price of basic food items for almost two months.
Moreover, Big C continued with our supply chain development as we opened a brand new Mini Big C distribution center according to schedule in late May, moved our Pure Drugstore DC to a new location, and received permit for our new Fresh Food distribution center targeted to open in Q1 2015.
In Q2 2014, Big C continued its store expansion by opening 2 Hypermarkets on Kallaprapruek Road in Bangkok and Sri Mahapot in Prachinburi province, 2 Big C Markets in Kosum Phisai, Mahasarakam province, and Kuchi Narai in Kalasin province, 20 Mini Big C (11 in Bangchak service stations) and 14 Pure Drugstores. The total number of stores at the end of June 2014 was 123 large format stores (Big C Supercenter, Extra, and Jumbo), 32 Big C Market, 313 Mini Big C (79 in Bangchak service stations), and 148 Pure Drugstores. The addition and continued successful management of lettable space also led to strong growth of rental and service income from tenants.