HomePro has achieved a 17.26% increase in half-year profit, reporting a net income of 2,177.43 million baht, up by 320.58 million baht, with total revenue reaching 31,046.04 million baht, an increase of 799.01 million baht or 2.64% This growth is attributed to new branches, including HomePro, Mega Home, and HomePro in Malaysia, along with an increase in gross profit margin to 26.00%. This improvement is a result of changes in the product mix for both general merchandise and Direct Sourcing, as well as better purchasing planning and improved profitability in the Mega Home business due to greater economies of scale.

        Mr. Khunwut Thamphromkul, Managing Director of Home Product Center Public Company Limited, or “HomePro,” a leader in the construction materials and home decoration industry, disclosed the company’s performance for the six-month period ending June 30, 2017, stating that the company achieved a net profit of 2,177.43 million baht in the first half of the year, an increase of 320.58 million baht or 17.26% compared to the same period last year. Total revenue was 31,046.04 million baht, up by 799.01 million baht or 2.64%, driven by sales revenue of 29,072.96 million baht, an increase of 815.10 million baht or 2.88%, resulting from growth in new branches, including HomePro, Mega Home, and HomePro in Malaysia.

          The company also reported rental and service income of 898.18 million baht, an increase of 11.71 million baht or 1.32%, due to higher rental income from additional leased space in newly opened branches since the second half of last year. Additionally, other income amounted to 1,074.90 million baht, down by 27.80 million baht or 2.52% due to a shift in marketing activities with partners to the second half of the year.

          Furthermore, gross profit was 7,559.09 million baht, an increase of 431.30 million baht or 6.05% compared to the previous year. The gross profit margin increased from 25.22% last year to 26.00%, resulting from changes in the product mix for both general merchandise and Direct Sourcing, improved purchasing planning, and better profitability in the Mega Home business due to increased economies of scale.

          Selling and administrative expenses were 6,621.41 million baht, an increase of 94.84 million baht or 1.45% compared to the previous year, primarily due to customer service costs and depreciation. However, the expense-to-sales ratio improved, decreasing from 23.10% last year to 22.78%, thanks to more effective expense management and control.

        Mr. Khunwut further stated that the economy in the second quarter is showing signs of improvement from the export and tourism sectors. However, the prices of most agricultural products remain low, affecting consumer purchasing power, and there is a lack of continuity in government spending stimulus measures compared to last year. Additionally, the early onset of the rainy season has impacted cooling product sales, along with the effects of opening new branches near existing ones (cannibalization) in Bangkok, particularly from the Rama 9 and Srinakarin branches, leading to HomePro's same-store sales growth not meeting targets.

          Nevertheless, in response to these challenges, the company has organized various activities to boost sales, such as expanding the HomePro Fair to provincial cities in the second quarter, which received a positive response, and introducing a new business format, HomePro S, to attract a younger customer base. The company also continues to focus on improving profitability across product categories, such as increasing the proportion of Direct Sourcing products, enhancing product quality, and improving internal efficiency.

          For the second quarter, the company continues to operate according to its long-term business plan, having opened two HomePro branches at Lotus Bangkae and HomePro S at Gateway Ekamai, bringing the total number of HomePro branches to 82 by the end of the second quarter. The Mega Home business has also been affected by consumer purchasing power and the rainy season. However, the Mega Home business has improved operational cost management and benefited from increased economies of scale.

         Mr. Khunwut added that in Malaysia, the HomePro business opened another branch in Melaka, which has received satisfactory feedback. As of the end of the second quarter, the company operates 82 HomePro branches, 11 Mega Home branches, and 3 HomePro branches in Malaysia, all in line with the set targets.

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