Thailand's Central Retail posts H1 revenue fall of 3.8% in Vietnam

Thailand’s leading retailer Central Retail reported a revenue of THB25,879 million ($727.8 million) from its operations in Vietnam in the first half of this year, down 3.8% year-on-year.

According to the firm’s financial statements, food products were the main revenue generator for Central Retail with THB21,798 ($613 million), marking 2.1% growth year-on-year; followed by hardlines with THB4,017 million ($113 million), a 26.9% decline; and fashion with THB64 million ($1.8 million), a 1.5% drop.

Central Retail also earned an income of THB974 million ($27.4 million) from property rental & services in Vietnam in H1, a 23% surge year-on-year.

Central Retail said Vietnam’s economy in the second quarter of this year maintained its slow pace, which prompted consumers to become more cautious in spending and adapt their purchasing behavior to limited budgets.

Still, Central Retail continued launching and renovating its establishments in Vietnam, the retailer said. In particular, it launched the one go! Nhon Trach supermarket in the southern province of Dong Nai, and rebranded and renovated three Big C supermarkets into Go! malls and hypermarkets.

At the end of June 2023, Central Retail had 52 Nguyen Kim stores for its hardlines segment (home products, electronic items, construction materials, supplies, and others). The food products segment featured 77 units, including 38 Go! malls and hypermarkets, and 39 Tops market, go!, and Lanchi stores.

Globally, Central Retail posted a revenue of THB123,208 million ($3.47 billion) in H1, up 9% year-on-year. The figure included THB110,233 million ($3.1 billion) from its main activities (food products, hardlines, fashion), THB4,580 million ($128.8 million) from property rental and services, and THB8,395 million ($236.1 million) in other incomes.

With the performance, the firm made a post-tax net profit of (NPAT) THB3,936 million ($110.7 million), up 41%.

In February, the biggest retailer in Thailand disclosed a $1.45 billion investment plan in Vietnam for the 2023-2027 period as it looked to expand its market presence in the country. CEO Yol Phokasub said Central Retail saw Vietnam as a high-potential market with continuous economic growth.

This year, it plans to launch five or seven new GO! supermarkets offering fresh food and affordable fashion products. This will be a significant addition to its current network of five branches.