Thai 7-Eleven operator CP All has reported slowing profit growth, despite increased revenue.
Net profit growth of 2.8 per cent was its weakest quarterly result in years, according to Thomson Reuters. Its net surplus was 4.78 billion baht (US$144.2 million). In the same period a year ago, growth reached 10.8 per cent.
The company’s gross margin slipped a half percentage point to 27.7 per cent due to higher sales of alcohol, cigarettes and game cards, which have low margins.
Total sales across the 10,000-strong Thai 7-Eleven store network was 129.7 billion baht, up 7.5 per cent, but the company was impacted by an increase in the minimum wage, rising power prices and higher supply chain costs.
CP All expects to have 13,000 stores by 2021.