Big C's total revenue from retail sales, rental and service income for Q1 drops to THB 28bn (USD 811mn), -14.9% over the same quarter last year. This is largely driven by a 20% decline in same store sales.
Trend for same store sales improved from H2 2016
Big C has been cutting out unprofitable sales due to deep discounting via cash vouchers and bulk volumes. The focus on quality of sales has continued in Q1. While the sales trend is at a decline, it has shown a clear improvement quarter-on-quarter, especially in the non-food categories. Better category planning and a stronger assortment have helped to localise the offer and generate better sales.
Strong margin improvement across the line
Net income grew by 4.3% due to significant margin expansion and resilient rental and service income. Operating profit declined by 2.1%, but it was offset by lower effective tax rate and finance costs. Big C's gross profit margin reached 16.1% and net income margin reached 6.4% for the quarter.
Store openings to support growth
Big C opened 11 new Mini Big C stores (of which 5 are franchised stores) and completed re-bannering two MM Mega Marts into Big C supercentres in the quarter. The total store count as of 31 Mar 2017 is 131 large format stores (Big C supercentre, Extra and Jumbo), 59 Big C Market, 475 Mini Big C and 142 Pure Drugstores.
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