CP AXTRA Public Co., Ltd. (referred to as CPAXT) announced its performance for 2023, demonstrating robust growth, particularly in Q4/2023. The company achieved total revenue of 128,613 million Baht, increasing 4% compared to the same period last year. Net profit reached 3,282 million Baht growing by 33% compared to the same period last year, due to various factors including new store opening, out-of-store sales growth, comprehensive product offering particularly in fresh food segment, and rental space management. Recently, the board proposed a dividend payment at 0.57 Baht per share. Looking ahead to the year 2024 the company aims for continuous sales growth through leveraging strategies such as out-of-store sales, store transformation, store expanding both domestically and internationally, enhancing strength in fresh food offerings, and developing ready-to-cook and ready-to-eat meals.
Mr. Tanin Buranamanit, Chief Executive Officer – CP AXTRA Public Company Limited, disclosed that the performance results for the year 2023 generated total revenue of 489,949 million Baht and a net profit of 8,640 million Baht, marking a growth of 4% and 12% compared to the previous year, respectively. The fourth quarter of 2023 was considered the best-performing quarter in the past year, attributed to several positive factors, including (1) Same-store sales and the opening as well as remodeling of both Makro-Lotus’s stores throughout the year (2) Increasing the proportion of out-of-store sales through the Makro PRO application, Lotus's SMART App, and the B2B Salesforce team with 38% rise compared to the same period last year. This was achieved by expanding same-day delivery services (3) Continuous growth in fresh food product offerings (4) Expanding leased space through mall area management.
Most recently, on 14 February 2024, the company's board of executives proposed at the shareholders’ annual general meeting 2024 to approve the payment of dividends for the year 2023 at a rate of 0.57 Baht per share. After deducting the interim dividend payment rate of 0.18 Baht per share that the company has already paid, the remaining dividend to be paid is at a rate of 0.39 Baht per share.
Regarding the business plan for 2024, the company and its subsidiaries target continuous revenue growth through various strategies:
• Expanding out-of-store sales, aiming to increase to 15% of the total sales within this year. Expecting significant sales growth from the mobile application with diverse product offerings, service enhancements, and expanding customer service areas to over 2,600 of Makro-Lotus’s stores nationwide as distribution center and product delivery. A key strategy involves developing a salesforce team of over 1,400 out-of-store salespersons with a deep understanding of customer needs to provide comprehensive service to business customers.
• Strengthening the fresh food segment while continuing to develop ready-to-cook and ready-to-eat meals, along with sourcing a diverse range of consumer goods to create variety and differentiation. Additionally, set targets to increase the sales share of own brand products (Private Label).
• Planning for store remodeling and store expansion both domestically and internationally to create smart lifestyle community centers for all age groups. This year, expansion plans will vary in format and size according to the customer groups in each area nationwide. For Makro, plans include opening 6-8 new stores, while Lotus’s plans to expand with 100 new stores in Thailand and Malaysia combined.
Furthermore, the internal restructuring within the business group by merging the wholesale business and retail business under a formation of a new entity, brings the potential of both brands “Makro” and “Lotus’s” to drive positive changes, enhances operational efficiency and resource management, also simplifies the shareholding structure and internal organizational structure within the company group. Additionally, expanding support for local farmers, small-scale producers, as well as SMEs to propel the business towards sustainability in all aspects: economic, social, and environmental. This is shown from the results of job creation in the past year. Over 90,000 individuals had been employed through the “Creating Jobs and Careers,” projects. Moreover, Makro-Lotus’s purchased vegetables and fruits worth over 9,800 million Baht, along with organizing training activities to share knowledge and enhance skills. The company is advancing various projects for society and the environment, such as clean energy utilization, providing nutritious food to those in need, and engaging in numerous activities to support local communities. This collective effort underscores the company's commitment to operating business for sustainability and amplifying its impact in a multiplicative manner.
