The net profit of C.P. Seven Eleven Plc declined by 11.7% year-on-year to 1.33 billion baht in 2006 due largely to the poor performance of its Lotus Supercenter stores in China, in which the Thai company holds 30% stake, a company executive said yesterday. ”We are not giving up in China because we invest for the long term,” Kriengchai Boonpoapichart, the company’s head of finance, told investors at a briefing at the Stock Exchange of Thailand.
”Even 7-Eleven also lost money in the first two or three years of its establishment. We have started to see signs of recovery for Lotus in China in the first two months of this year.”
He said that he expected the operation of Lotus in China would improve this year, with the loss expected to be lower than last year’s loss of three billion baht.
Though retail competition in the Chinese market is intense, the company said it would continue to spend between 500 million and 1.25 billion baht to open another two to five outlets of Lotus Supercenter in Shanghai this year.
For the local market, the company will spend 3.1 billion baht for business expansion this year. Of the total, about 1.3 billion baht will be spent on opening 400 to 450 new 7-Eleven convenience store outlets, one billion baht for investments in subsidiaries and a distribution centre, and 400 million baht each for renovating 400 existing stores and upgrading assets and IT systems.
The total revenue of C.P. 7-Eleven last year was 104.87 billion baht, up 6% from the previous year. Its net profit dropped by 11.7% to 1.33 billion baht.
Share of C.P. 7-Eleven (CP7-11) closed yesterday on the SET at 5.75 baht, up five satang, in trade worth 65.79 million baht.
e² Young Engineers
Build Your Tomorrow. Today! CLICK HERE TO VISIT OUR WEBSITE Background: We are e² Young Engineers Young Engineers enrichment programs combine education + entertainment = edutainment. We created a variety of different programs that can be used to teach science, technology, engineering, math (STEM). Children joining our educational community can learn and enjoy arithmetic, physics, […]
Motiply Mobile App Business
Make Money – Start a MOBILE APP Business Mobile websites are hot and in demand like never before thanks to the explosion of mobile devices such as smartphones and tablets. Businesses are paying BIG money for mobile website and app design and now YOU can get a piece of the action! The With our training […]
Open A Boutique
FREE Tools Guide on “How to open an online or brick & mortar Boutique – on a budget”