Network expansion boosts Berli Jucker Profit
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Berli Jucker, the operator of Thailand’s Big C retail stores, has reported revenue of THB30.9 billion (US$979 million) in the first quarter, gaining THB1.6 billion (US$50.5 million) over the same period last year.
Network expansion was the main driver of the revenue growth, reported IGD, with 27 Mini Big C stores opening during the quarter, more than compensating for the closure of 13 convenience stores.
The company’s gross-profit margin decreased from 16.3 per cent to 15.9 per cent due to lower business-to-business sales.
Net profit declined 2.3 per cent due to increased staff costs due to store expansion and yearly bonuses, together with increased store-opening and closing expenses and rising utility prices.
As at the end of March, the company had 147 hypermarkets, 61 supermarkets, 797 Mini Big C and 140 Pure drugstores trading.
Like-for-like sales grew 1 per cent year on year while other income including rental increased 4.7 per cent over the same period, reported IGD.
Questions & Answers
Q.What caused the overall net profit for Berli Jucker to decline in the first quarter?
What caused the overall net profit for Berli Jucker to decline in the first quarter?
Net profit declined due to several factors including increased staff costs from store expansion and yearly bonuses. Higher expenses for opening and closing stores, along with rising utility prices, also contributed to the decrease.
Q.Which specific store formats were responsible for the network expansion mentioned in the report?
Which specific store formats were responsible for the network expansion mentioned in the report?
The network expansion was driven by the opening of 27 new Mini Big C stores during the first quarter. This growth more than offset the closure of 13 convenience stores during the same period.
Q.What was the reason for the reported decrease in Berli Jucker's gross-profit margin?
What was the reason for the reported decrease in Berli Jucker's gross-profit margin?
The company's gross-profit margin saw a decrease from 16.3 per cent to 15.9 per cent. This reduction was specifically attributed to lower business-to-business sales performance during the quarter.
Q.Did the company experience any growth in sales from its existing stores?
Did the company experience any growth in sales from its existing stores?
Yes, like-for-like sales for the company grew by 1 per cent year on year. Also, other income sources, which include rental revenue, increased by 4.7 per cent over the same period.
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