Central Pattana reports Q1 revenue of 9.528 million baht and net profit of 3.835 billion baht, reinforcing its strong financial position in face of the new COVID-19 wave
published : 17 May 2021 at 15:43
Central Pattana Plc., reported its performance for the first quarter of 2021 with total revenue of 9.528 billion baht and a net profit of 3.835 billion baht.
The figures reflect the company’s ability to maintain its financial robustness, achieve commendable efficiency gains, and professionally fine-tune its business strategy to handle various uncertainties while providing support to stakeholders. This, in-turn, permits the company to move forward to invest in new mixed-use development projects, namely Central Ayutthaya and Central Si Racha, scheduled to open this year, and Central Chanthaburi, to open in mid-2022.
“In the first quarter of 2021, Central Pattana retained its ability to generate revenue and profit despite the persistent COVID-19 outbreak,” commented Ms. Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President – Finance, Accounting & Risk Management of Central Pattana. “Total revenue of 9.528 billion baht and net profit of 3.835 billion baht represented a decrease of 17% from the prior year in both cases but included the impact of non-recurring items and the new financial reporting standards. Overall, business performance was professionally handled to mitigate the impacts to all stakeholders.”
“Among the priorities have been cost reduction initiatives to combat the drop in revenue and protect the company’s cash flow and liquidity amid uncertain situations. The company has also adjusted its business strategies and investment plans in light of current circumstances and future growth trajectories. We have continuously provided support to shop tenants in the shopping centres by reducing rental fees in accordance with the levels of impact they receive and exempting charges for shops which were closed during the lockdown.”
“At the same time, we launched an omnichannel platform which includes Chat & Shop, takeaway and delivery services. As for SMEs, farmers and other groups who were hard hit by the pandemic, we provided free spaces for them to distribute their products and services, thereby helping to generate income to local communities amid the subdued environment.”
Following the fresh round of COVID-19 outbreak since April 2021 and continuing, Central Pattana maintained its stance to uphold the interests of its stakeholders as its top priority to mitigate the impact. This covers but is not limited to customers, tenants, lessees, business partners, communities, shareholders and other concerned parties.
Furthermore, Central Pattana has been collaborating with the public and private sectors to prepare its shopping centres for vaccine distribution to the general public as quickly and holistically as possible.
These collaborative efforts help to ease the situation and ensure that citizens’ lifestyles return to normal quickly. They also set the stage for economic recovery.
Meanwhile, the company is prepared to launch marketing campaigns to stimulate spending and consumption for the remainder of the year.
For 2021, Central Pattana plans to continue to develop three large mixed-use projects valued at 13.9 billion baht in total. These are Central Ayutthaya and Central Si Racha, slated to open at the end of this year, and Central Chanthaburi, scheduled for mid-2022. The projects help propel the government’s plan for infrastructure development in the three provinces, which are considered as having high potential. The projects will benefit the areas in terms of economy, tourism and employment. They will also help the Thai economy recover. Each of the projects will become a new landmark and a centre of lifestyle and identity for the respective province.
Central Pattana is also developing Dusit Central Park jointly with Dusit Thani PLC (DTC) on a highly valued land plot in the ‘super core CBD’ of Bangkok. The project is slated to open in phases in 2023-2024.
Central Pattana currently manages a total of 34 shopping centres with total NLA of 1.8 mn sq.m. (15 projects in Bangkok Metropolitan Area – BMA, 18 projects in provinces, and one project in Malaysia), 30 food centres, 10 office towers and two hotels. In terms of residential project development, the company has thus far launched 15 projects. These include: 1) condominium projects under the brands ESCENT, ESCENT VILLE, ESCENT PARK VILLE, PHYLL PAHOL 34, and BELLE GRAND RAMA 9; low-rise projects, namely, ESCENT TOWN PHITSANULOK (townhome), NINYA KALLAPAPRUEK (twinhome), NIYHAM BOROMRATCHACHONNANI (luxury single houses), and; the newly launched single houses brand NIRATI in Chiangrai and Bangna.
These projects include those managed by Grand Canal Land PCL (GLAND), a property developer in which Central Pattana is the major shareholder, with assets under development in high potential locations across Metropolitan Bangkok.
Under its five-year investment plan from 2021-2025 and in preparation for future uncertainties, Central Pattana will focus on: maintaining annual revenue growth by developing new mixed-use and residential projects; improving its current assets to increase value; adjusting strategies in accordance with the situation, and; managing expenses and costs with efficiency to maintain good cash flow.
Meanwhile, as the company aims to generate new income and grow firmly with sustainability in accordance with its targets, it is studying: opportunities to invest in new businesses with high potential; acquisitions of operations, and; expansion into other Southeast Asian countries such as Malaysia and Vietnam.