HomePro Q1 profits up over 13.73 % due to cost control, sales promotions

The increase is attributed to controls to manage expenses, changes that ensure the product group competes with all groups, product development under the company brand, and continuous sales promotion activities.

Sales revenue amounted to Bt15.39 billion, an increase of Bt525.01 million or 3.53 per cent, which was due to the growth of same-store sales of HomePro and Mega Home businesses as well as sales growth from new stores from home businesses that HomePro launched in 2018.

“In the first quarter of 2019, the economy continued to expand at a lower rate compared to the same period last year,” Khunawut Thumpomkul, managing director of Home Product Centre PCL, said. “With support from private consumption from both the agricultural sector, especially the rising price of rice and non-agricultural consumption that continues to improve, which is partly due to being supported by government measures while the number of tourists remained stable. However, the country’s economic forecast in 2019 will grow at a slower rate from the previous year.

The company has rental income and other services in the amount of Bt657.95 million, an increase of Bt58.62 million or 9.78 per cent, resulting from increased rental income from rental areas in Market Village shopping mall and revenue from ”Home Service”  service fees.

The company’s gross profit for the first quarter of 2019 amounted to Bt4.03 billion, an increase of Bt178.34 million or 4.63 per cent compared to the previous year. For the gross margin per sales increased from 25.89 per cent in the previous year to 26.17 per cent as a result of the adjustment of product ingredients for sale in general products and increasing the profit margins of the Direct Sourcing product group, including the continuous improvement of product procurement plans for HomePro, Mega Home and HomePro businesses in Malaysia, with a better profitability rate.

Selling and administrative expenses reached Bt2.97 billion, an increase of Bt58.14 million or 2 per cent compared to the previous year. The main factors of the monetary increase are increases in salary, rental, repair and marketing expenses. However, the cost-to-sales ratio has improved by decreasing from 19.58 per cent in the previous year to 19.29 per cent, which is the result of efficient cost control and management.

“This quarter is still in accordance with the plan in place, with higher sales than normal from products for improving air quality, due to high pollution, especially in Bangkok, central and northern regions,” said Khunawut. “We organised various promotional activities, such as the HomePro Expo during March 15-24 2019, with overall sales at a satisfactory level.”