SET-listed retail and property developer Central Pattana Plc (CPN) reported its first-quarter results with total revenue of 8.07 billion baht and a net profit of 2.33 billion baht.
The first-quarter results expressed by these two figures are in line with the company's business projection as Thailand's improved Covid situation has helped boost the retail sector and comes at a time when CPN is set to officially open Central Chanthaburi on May 26.
Both total revenue and net profit have dropped by 15% and 39%, respectively, from the same period the previous year.
But if the non-recurring items and impact from financial reporting standards are excluded, total revenue and net profit would have increased by 23% and 72% year-on-year, respectively.
Naparat Sriwanvit, chief financial officer of CPN, said the company successfully maintained its average occupancy rate across its retail portfolio at 91% while the government relaxed its Covid-19 controls and implemented various measures to boost the economy and tourism, including the co-payment scheme, the Shop Dee Mee Kuen scheme, the fourth We Travel Together scheme and Test and Go project, resulting in more domestic spending and travel as well as a return of foreign tourists.
"Despite the strong recovery, the outlook remains challenging as slow economic growth, tourism recovery hit by the Russia-Ukraine war, and rising inflation and interest rates are expected to curtail the recovery momentum," he said.
"Hence, the company continues to put utmost importance on managing and adapting its business strategies according to changing circumstances, focus on effective cost management and maintaining the robust capital structure," he said.
As part of its five-year business plan from 2022-26, the company said it strives to become the country's top developer by supplementing the shopping centre business with high-quality residential projects, office buildings and hotels.
CPN will invest 120 billion baht in new mixed-use developments and revamp existing projects across over 30 provinces.
About 50 shopping centres will be the core component of its new business format, aimed at catering to new trends and improving the lives of neighbourhoods and communities around the country.
CPN has also adjusted its investment and development plans for several announced and unannounced projects, including mixed-use developments, residential projects and other assets to increase value, increase efficiency of cost management and maintain liquidity to prepare for potential uncertainties.
The company is also studying the feasibility and opportunities to invest in other businesses, acquisitions and overseas projects in Southeast Asian countries such as Malaysia and Vietnam.
Furthermore, under CPN's president and chief executive, Wallaya Chirathivat, the firm announced a new vision of "Imagining Better Futures For All" to create a sustainable ecosystem by creating a synergy of all involved parties, partners, communities and mixed-use projects.
As a result, the company will invest 450 million baht this year and has set up a business and digital transformation task force to transform its operations into an omnichannel platform that connects all businesses in its ecosystem under a B2B2C format.