CPALL Plunges to Bt58.75 after 1Q21 Earnings Miss Expectations!


The share price of CP All Public Company Limited (CPALL) fell ฿2.00/share or 3.29% to ฿58.75/share as of 10:37 local time in Thailand on May 13, 2021, with a trading value of 1,313 million baht.

 

The plummet might be due to the fact that the company reported a 53.96% decrease in 1Q21 earnings to  2,599 million baht, which was below the analyst’s expectations.

Krungsri Securities (KSS) expected CPALL to book 3.3 billion baht of net profit in 1Q21, representing a decrease of 42% YoY, pressured by lower EBIT by 5% (-116bps YoY).

Meanwhile, Maybank Kim Eng estimated CPALL’s 1Q21 earnings at 3.5 billion baht, representing a decrease by 38% YoY from slower growth in SSG of CVS.

 

CPALL stated that the main reason for the decrease of net profit by 53.96% was due to a softened revenue from sales and services for the period.

In 1Q21, CPALL’s total revenue was 133,431 million baht, decreased by 8.5% from 1Q20, mainly due to soften revenue from sales and services. A decrease of revenue was a consequence of a new wave of COVID-19 pandemic which once again had a negative impact on the Thai economy, especially in January. These affected slower recovery of domestic consumption and the purchasing power of consumers, including tourism.

CPALL recognized gross profit from sales and services at 27,279 million baht in 1Q21, decreased by 12.5% from the same period of last year as a result of lower revenue from sales and services of convenience store business.

Consolidated Gross Profit margin to revenue from sales and service was 21.2% in this quarter, decreased from 22.1% in 1Q20, mainly from higher gross profit contributed from cash and carry business.

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