The Pandemic Outbreak Shocks CRC in 2Q20 by Reporting a Net Loss for the Quarter

Central Retail Corporation Public Company Limited (CRC) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

In the second quarter of 2020, CRC reported total revenue of THB 41,376 million, decreased by 21.3%. Net loss was THB 2,519 million, decreased THB 4,287 million from the same period last year. The decrease was mainly due to the government’s measures to control the COVID-19 pandemic, by the temporary closure of stores in Fashion and Hardline segments while the Food segment was impacted by limited operating hours, since March 2020.

 

CRC stated that stores have been re-opened in Thailand, Italy, and Vietnam since 17 May, 18 May, and the beginning of May, respectively. However, customers’ spending has not yet resumed to usual due to the concern about the continued pandemic in overseas, the low expectation of economic recovery, business cutting down expenses and layoff.

The company has been affected in every segment, particularly Fashion where sales decreased by THB 7,380 million or 47.6%. Omni-channel strategy, such as online, chat & shop and call & shop, etc. as well as strictly cost control measures were implemented to stabilize the business.

 

In addition, the TFRS #16 Leases and TFRS #9 financial instruments have been adopted since 2020, which impacted our net profit leading to a decrease of THB 250 million.