Home decoration and improvement company Home Product Center Plc, the operator of HomePro, is upbeat about its revenue prospects this year, driven by the country's economic recovery, improving tourism and consumer purchasing power.
According to managing director Weerapun Ungsumalee, the company expects revenue growth of 8-9% this year from 69.4 billion baht in 2022, which gained 8.55% from 2021.
Last year the company posted a net profit of 6.21 billion baht, up 777 million baht or 14.3% year-on-year.
In the first quarter this year, Home Product Center reported a net profit of 1.61 billion baht, an increase of 100 million baht or 6.63% year-on-year. Total revenue tallied 18.3 billion baht, up 1.57 billion or 9.47%.
The main factor for the revenue growth was product sales revenue and service income (home service), which rose by 1.46 billion baht or 9.28% to 17.2 billion baht.
The first-quarter revenue uptick was attributed to expansion of the Thai economy as the tourism sector revived, leading to increased consumption of goods and services in regions related to the tourism industry, which had a much higher growth rate than other regions, he said.
Government stimulus measures such as the "Shop Dee Mee Khuen" tax rebate scheme also led to increased private sector consumption in the country. These positive factors contributed to higher sales for the company, both for its brick-and-mortar stores and online, said Mr Weerapun.
The company organised sales promotion events such as the HomePro Expo at Impact Muang Thong Thani and Double Day activities online to increase customer convenience.
Home Product Center opened three new Mega Home stores at Rattanathibet, Bang Phli and Tiwanon in the quarter, giving it 87 HomePro stores, five HomePro S stores, 21 Mega Home stores and seven HomePro branches in Malaysia.
"During the first quarter, the group confronted various headwinds such as rising costs from electricity, pre-operating expenses as well as financial market volatility leading to higher interest rates," he said.
"The company prepared strategic plans for several areas to alleviate rising expenses, such as installing more solar rooftops at stores."
