MAKRO’s Profit Drops 3.2% from Business Expansion, Asserting Constant Sales Growth
MAKRO has reported a drop of 3.2% in profit while sales continue to grow.
Siam Makro Public Company Limited (MAKRO) has reported its consolidated financial statement yearly 2018 through the Stock Exchange of Thailand as follows:
MAKRO recorded a lower profit in 2018 for a total of THB 5,941 million, decreased 3.82% from last year. This was mainly due to loss from an overseas expansion especially in Cambodia and India, where there are operating expenses from their initial stage of business, including store opening expenses in 2018 and those to be opened in 2019.
The Board of Directors has resolved to approve a dividend payment to shareholders from the operation in 2018 at the rate of ฿0.56/share in cash to be paid on May 22, 2019. The ex-dividend date is March 5, 2019.
MAKRO’s revenues mostly came from sales. In 2018, its total sales were THB 188,583 million, grew by 3.2% from THB 182,753 million in 2017. This is owing to a continuous store expansion of 7 new stores in various formats including 6 Makro Foodservice stores and 1 Eco Plus store.
The increase in sales was derived from Makro Business in Thailand which attributed to the continuous emphasis on store format development which MAKRO continues focusing on domestic business expansion by developing and tailoring store formats to meet the demands of our professional foodservice customers.
The domestic food service industry has witnessed sustained growth, largely due to the expansion of the tourism sector, with support from government policies. The growth also attributed to the overseas business expansion which was the result of full-year operation of Makro store in Cambodia, as well as 2 new stores opened in India in the second half of 2018.
Moreover, sales from the Food Service business continuously grew in relation to the sales growth of Indoguna and the development of product assortment to serve the needs of targeted customers by considering their individual business model.
In addition, MAKRO opened new stores in overseas including 2 stores in India and 1 food service shop, while one of Siam Frozen shop – Chan Road Branch was closed during the year. As a result, at the end of 2018, Makro had a total of 129 stores nationwide.