CP ALL Public Company (CPALL) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in 2Q24 with consolidated revenue of 248,026 million Baht (+6.9% YoY) and net profit of 6,239 million Baht (+40.6% YoY), driven by revenue growth across all business units and effective cost control.

• Company-only revenue reached 121,606 million Baht (+8.5% YoY) and net profit was 6,742 million Baht (+10.1% YoY).

• 1H24 consolidated revenue totaled 489,333 million Baht (+7.7% YoY) and net profit was 12,559 million Baht (+46.7% YoY).

• Continued store expansion domestically and internationally, with 14,854 stores in Thailand and 87 in Cambodia, 6 in Laos as of 2Q24.

• Higher domestic consumption and tourism supported revenue growth.

Financial highlights

• Consolidated gross profit margin improved to 22.4% in 2Q24 (+9.1% YoY); EBIT margin at 5.0% (+21.4% YoY).

• Company-only gross margin reached 29.0% in 2Q24 (+11.9% YoY); EBIT margin at 8.0% (+7.5% YoY).

• EBITDA for 2Q24 was 21,538 million Baht (+11.3% YoY); net margin at 2.5% (+40.6% YoY).

• SG&A expenses increased 6.5% YoY (consolidated) and 9.1% YoY (company-only) in 2Q24.

• Earnings per share for Q2 2024 was Baht 0.68; for the first half, Baht 1.37.

Outlook and guidance

• Ongoing store expansion with a 2024 CAPEX plan of 12,000–13,000 million Baht, targeting 700 new stores in Thailand and further growth in Cambodia and Laos.

• Focus on enhancing product mix and margin, leveraging fixed cost efficiencies, and expanding online-to-offline (O2O) channels.

• Revenue growth expected from new stores, positive SSSG, and online channels, in line with Thai GDP growth.

• Gross profit margin expected to improve further, driven by higher-margin products.