CPALL: Oppday Q3/2025 บมจ. ซีพี ออลล์

Company Financial Results Presentation

Introduction to the Presentation

• The presentation welcomes investors and introduces the speakers, including Sita Tawansumith, Investor Relations, and Panthiranantakham, General Manager of Investor Relations.

• The company reports on Q3 financial results for 2025, acknowledging various challenges but noting improvements across all metrics due to strategic initiatives.

Q3 Financial Performance Overview

• In Q3 2025, total revenue increased by approximately 6%, reaching 122.7 billion THB, driven by customer service enhancements.

• Gross profit also improved compared to the previous year, with a focus on high-margin products leading to a gross margin increase of about 30 basis points to 29.4%.

• EBIT (Earnings Before Interest and Taxes) rose in both absolute terms and as a percentage of total revenue due to effective cost control measures.

• Net profit for Q3 was reported at approximately 5.2 billion THB, reflecting a growth of 16.4% from the same period last year.

Consolidated Financial Results

• Total consolidated revenue for Q3 reached around 250 billion THB, marking an increase of about 3.9% year-on-year.

• The net profit in consolidated financial statements was reported at approximately 6.6 billion THB, up by about 17.6% from the previous year's third quarter.

Year-to-Date Financial Insights

• For the first nine months of the year, total revenue grew by approximately 4.1%, while net profit increased by about 15.3% compared to the same period last year.

• Revenue breakdown shows that around 53% comes from convenience store operations and other support businesses; another 47% is derived from wholesale and retail sectors under CP Extra.

Expansion Plans and Store Growth

• In Q3 alone, there were new openings totaling 169 stores in Thailand; overall for nine months this year, there have been a total of 519 new store openings.

• By the end of Q3, there were a total of 15,764 convenience stores operating in Thailand with plans to meet an annual target of 700 new stores.

Market Presence and Sales Channels

• Store distribution remains stable: urban areas account for 42%, while rural areas make up 58%; company-owned stores represent 51% with franchisee-operated stores at 49%.

• Internationally during this period: Cambodia saw an addition of 13 new branches totaling 125, while Laos added 10, bringing its total to 20 branches.

Sales Strategies and Promotions

• Despite seasonal challenges in Q3 related to economic conditions and weather impacts on tourism, promotional strategies were adapted effectively based on customer demand.

• A successful stamp campaign was launched featuring collaborations with popular characters like Hello Kitty which received positive customer engagement through premium exchanges.

Sales Growth and Product Strategy Overview

Collaboration with Influencers

• The company collaborates with artists and influencers to promote ready-to-eat food products and beverages, which has been a consistent strategy.

• Online-to-offline (O2O) sales have shown significant growth, contributing positively to the overall sales performance in Q3.

Sales Performance Metrics

• Same Store Sales Growth (SSSG) for Q3 is reported at 0.5%, indicating slight growth compared to previous quarters.

• Average sales per transaction are at 86 THB, showing an increase from the same quarter last year despite a decrease from the previous quarter.

• The average number of customers visiting each store daily is approximately 943, leading to an average daily sales figure of 81,300 THB per store.

Product Category Insights

• In Q3, food product sales accounted for 76.5% of total sales, reflecting a strategic focus on becoming a destination for food and beverage consumers.

• Non-food product sales represent 23.5% of total revenue; this category includes personal care items like toothpaste and hair care products.

Margin Analysis

• Food product margins improved by about 30 basis points year-over-year, reaching 27.5%, driven primarily by ready-to-eat and ready-to-drink categories.

• Non-food product margins remain stable around 29%, supported by personal care and health-related products.

Financial Health Overview

• Total interest-bearing debt as of Q3 stands at 321 billion THB; the majority (87%) consists of bonds while the remaining is bank loans.

• The debt-to-equity ratio remains stable at 0.83 times, well below the covenant limit set at two times.

Cash Flow Cycle and Future Outlook

Cash Flow Management

• The company reports negative cash cycle days in both consolidated financial statements and specific business operations, indicating efficient cash flow management.

Economic Outlook for Q4

• As they enter Q4, there are concerns regarding consumer spending due to economic softness; however, government initiatives like "Khon La Khreung Plus" aim to boost traditional trade.

• Increased consumer purchasing power could positively impact modern trade if market conditions improve over time.

Weather Impact on Business

• Adverse weather conditions such as heavy rains may negatively affect customer footfall in stores during Q4 despite it typically being a high season for retail.

Overview of Business Expansion and Strategy

Q4 Performance Expectations

• The company anticipates increased support in the upcoming months, projecting a positive outlook for Q4.

• A target of 700 branches has been set, with approximately 519 branches already opened in the first three quarters.

Branch Expansion Plans

• The goal remains to open around 700 branches over the next three years, maintaining consistency in growth targets.

• There are concerns regarding the impact of not including modern trade in their strategy but they aim to remain a key food and drink destination.

Customer Engagement Strategies

• Focus on Ready-to-Eat products is emphasized as a primary strategy to attract customers.

• The company aims to introduce new health-oriented products catering to an aging population, such as clean foods and nutritious options.

Product Innovation and Health Trends

• Continuous introduction of new fruits and healthy items is part of their strategy to keep customer interest high.

• They have expanded their offerings beyond traditional items like chicken breast to include protein shakes, enhancing appeal.

Promotional Campaign Insights

• Recent promotional campaigns, such as stamp collection initiatives, have received positive feedback from customers.

• The store aims to be top-of-mind for customers when they think about quick meal solutions or snacks.

Revenue Growth and Future Projections

• Other income sources are growing alongside sales due to effective promotional strategies that boost overall revenue.

• For the coming year, they plan continued expansion with an investment budget between 13 billion - 14 billion THB focused on branch expansion and IT improvements.

Economic Context and Market Positioning

• Business growth will be benchmarked against Thailand's GDP growth projections for informed decision-making.

• High-margin products like Ready-to-Eat and Ready-to-Drink categories are central to their business model moving forward.

Growth and Expansion Strategies

Overview of Sales Growth and International Branches

• The company is experiencing growth in sales, profits, and net income.

• In terms of international expansion, particularly in Laos, the company plans to open a few branches each quarter, estimating around 10 branches for the year.

Insights on Cambodia's Market Presence

• The company continuously monitors its operations and risks associated with market conditions in Cambodia.

• Currently, there are approximately 125 stores in Cambodia compared to nearly 16,000 in Thailand; this indicates a significantly smaller market presence.

Contribution to Revenue from Stores

• The contribution of Cambodian stores to overall sales is minimal due to their small number relative to Thai stores.

• Other business segments contribute about 6-7% of revenue through subsidiaries that produce food and bakery items sold at their outlets.

Future Growth Plans

• The company's growth strategy includes benchmarking against Thai GDP while focusing on food and beverage sectors that have shown strong sales performance.

• New product offerings include premium coffee options sourced from various regions, aimed at enhancing customer experience.

Cost Management and Profitability Goals

• There is an emphasis on maintaining cost efficiency as a percentage of total revenue across all business units under CP.

• The goal remains to deliver consistent profit growth for investors while managing expenses effectively.

Closing Remarks and Investor Engagement

• Investors were informed about Lotus operations under CPTRA management; further details were shared during Opportunity Day.

• Investors can reach out via email for any additional questions post-meeting; appreciation was expressed for their participation.