CP Axtra reports strong Q1 2026 performance with 5.7% increase in net profit 

CP Axtra Public Company Limited has reported a 5.7% increase in net profit and a 3.3% rise in total revenue for the first quarter of 2026, reflecting the company’s continued strong performance in both its wholesale and retail sectors. The company’s growth is primarily driven by strategic branch expansions, a boost in online sales, and a focus on adapting to shifting consumer behavior.

Solid Revenue Growth

The company’s total revenue reached 60.856 billion baht, a 3.3% increase compared to the same period last year. This growth was largely supported by the company’s business in Malaysia, driven by government stimulus measures that boosted consumer spending on essential goods. Moreover, the timing effect of festivals contributed to increased sales.

CP Axtra’s wholesale business recorded 75.194 billion baht in revenue, growing 5.9% year-on-year, supported by Makro Thailand and the food service business. The company opened four new branches in high-potential locations, both domestically and internationally, although it also closed two branches during the same period. As of Q1 2026, Makro had 168 branches in Thailand and 10 branches overseas.

The retail business posted 60.856 billion baht in revenue, up 3.3% from last year. Growth in this segment was supported by both domestic and international markets, particularly the Malaysian business. Sales were also boosted by the government’s economic stimulus measures and increased demand for essential consumer goods.

Strong Online Sales Growth

In addition to the overall growth, online sales via platforms such as Makro PRO and Lotus’s Smart App saw a 27.6% year-on-year increase, highlighting the company’s effective focus on expanding its e-commerce channels. The continued success of omni-channel sales also contributed significantly to the company’s performance, accounting for 22% of total revenue.

Strategic Expansion and Cost Control

A significant driver behind the performance was CP Axtra’s strategic expansion, which included the opening of 223 new branches in the first quarter of 2026. The company has maintained a focus on expanding its physical footprint while continuing to optimize operations. Despite some closures, the company’s broader expansion strategy, which includes a mix of retail and wholesale stores, has contributed positively to the revenue stream.

On the cost side, net profit reached 2.793 billion baht, marking a 5.7% increase compared to the previous year. This increase was attributed to efficient cost management, a reduction in finance costs, and income recognition from the acquisition of Renewed Hope Pte. Ltd., which operates under the Lucky Frozen brand in Malaysia. This acquisition significantly bolstered the company’s food service sales and reinforced its expansion efforts in the ASEAN region.

Future Outlook and Strategy

Looking ahead, CP Axtra is focusing on long-term growth by continuing to expand both domestically and internationally, especially in countries with strong economic growth potential. The company aims to continue developing products that align with changing consumer preferences, including a greater focus on private label products, ready-to-eat food, and licensed products.

The company is also prioritizing omni-channel sales and further e-commerce expansion, with a goal of continuing to drive online sales growth. At the same time, it is enhancing its technology infrastructure to improve operational efficiency and reduce costs.

For the full year of 2026, CP Axtra continues to target sustained total revenue growth through product development, improved service efficiency, and strategic marketing efforts. The company’s expansion strategy will also include the development of "Happy Malls", creating spaces that serve as community hubs while continuing to grow its presence in the ASEAN region.

Risks and Challenges

However, the company is closely monitoring external risks, including global economic volatility, trade protectionist policies, and the ongoing geopolitical tensions in the Middle East, which have impacted global supply chains. Inflationary pressures and rising production and transport costs are also areas of concern. At the same time, the company is addressing domestic challenges such as tourism slowdown, household debt levels, and fragile consumer purchasing power.

CP Axtra remains committed to adapting its strategy to these challenges and maintaining its ability to grow in the long term through careful cost control and strategic investments.