March 9, 2005
BANGKOK (Reuters) - Thai hypermarket operator Big C Supercenter said on Wednesday it expects sales and profit growth in 2005 to be at least equal to last year due to new stores and scrapped a bond issue plan.
The company planned to spend 3 billion baht ($78 million) on adding four new branches in Bangkok and upgrading existing stores and that would lift revenues, financial officer Rumpa Kumhomreun told reporters.
"We should have better sales growth this year, but less than 15 percent," Rumpa said. "The first quarter should also be good as sales already grew 12 percent in the first two months."
Gross margins this year should be similar to last year's 10 percent, Rumpa said without elaboration.
Analysts polled by Reuters Estimates expect Big C's net profit to rise 5 percent rise to 1.68 billion baht this year, while sales are likely to grow 11 percent to 53 billion baht.
Its net profit rose 13 percent to 1.6 billion baht last year, while sales rose 12 percent to 47.4 billion baht.
Big C is 36 percent-owned by the French Casino group . Morgan Stanley & Co International and State Stree Bank and Trust are also major shareholders.
It competes with Britain's Tesco Plc , French-owned Carrefour and Siam Makro .
The company's investment this year would be financed from working capital and it would increase the number of its stores to 44 by the end of the year, Rumpa said.
It also planned to open at least two provincial stores next year, she added.
The company had also cancelled a plan to sell up to 4 billion baht bonds, but would seek a loan at lower interest rates from parent Casino, Rumpa said.
The firm had a debt of 1.9 billion baht borrowed from Casino which carried an interest rate of 3-4 percent, she said.
Shares in Big C closed unchanged at 20 baht on Wednesday, in line with a flat overall market. ($1=38.30 baht)
BANGKOK (Reuters) - Thai hypermarket operator Big C Supercenter said on Wednesday it expects sales and profit growth in 2005 to be at least equal to last year due to new stores and scrapped a bond issue plan.
The company planned to spend 3 billion baht ($78 million) on adding four new branches in Bangkok and upgrading existing stores and that would lift revenues, financial officer Rumpa Kumhomreun told reporters.
"We should have better sales growth this year, but less than 15 percent," Rumpa said. "The first quarter should also be good as sales already grew 12 percent in the first two months."
Gross margins this year should be similar to last year's 10 percent, Rumpa said without elaboration.
Analysts polled by Reuters Estimates expect Big C's net profit to rise 5 percent rise to 1.68 billion baht this year, while sales are likely to grow 11 percent to 53 billion baht.
Its net profit rose 13 percent to 1.6 billion baht last year, while sales rose 12 percent to 47.4 billion baht.
Big C is 36 percent-owned by the French Casino group . Morgan Stanley & Co International and State Stree Bank and Trust are also major shareholders.
It competes with Britain's Tesco Plc , French-owned Carrefour and Siam Makro .
The company's investment this year would be financed from working capital and it would increase the number of its stores to 44 by the end of the year, Rumpa said.
It also planned to open at least two provincial stores next year, she added.
The company had also cancelled a plan to sell up to 4 billion baht bonds, but would seek a loan at lower interest rates from parent Casino, Rumpa said.
The firm had a debt of 1.9 billion baht borrowed from Casino which carried an interest rate of 3-4 percent, she said.
Shares in Big C closed unchanged at 20 baht on Wednesday, in line with a flat overall market. ($1=38.30 baht)