Home Products Center anticipates a recovery in fourth-quarter sales due to the peak shopping season. The company acknowledges the impact of flooding in the latter part of the third quarter, but reports minimal damage to assets. The company aims for a capital expenditure (Capex) of 4,000–6,000 million Thai baht over the next 3-5 years, focusing on expanding new branches and renovating existing ones.

Key summary

Mr. Rakpong Arunwatthana, Assistant Managing Director, Investor Relations, Strategy, and Corporate Sustainability Group, Home Products Center (HMPRO), stated that fourth-quarter sales are expected to recover due to the peak shopping season. However, sales slowed in the latter part of the third quarter due to flooding in Bangkok and other provinces, making it difficult for people to manage their homes and travel. Some branches, such as those in Fashion Island and Prachin Buri, were temporarily closed. The company reported minimal damage to assets and a short-term impact. The company is continuing to stimulate sales despite economic challenges, inflation, and high oil prices, focusing on managing cash flow and costs. The capital expenditure (Capex) plan for the next 3-5 years is 4,000–6,000 million Thai baht, with 60-70% allocated to expanding new branches and the remainder to renovating existing branches, IT, and repairs. The company aims to refresh existing branches to make them more modern. The new internal rate of return (IRR) is expected to be at least 10-12%, with an average payback period of 5-8 years. Mega Home has the longest payback period, followed by Hybrid, and HomePro has the shortest. Accounts payable decreased due to increased inventory in the second quarter to mitigate the impact of rising oil prices, but this did not affect credit terms. Online channels grew by 9%, higher than brick-and-mortar stores, thanks to omni-channel platforms and partnerships. The HomePro professional services business is growing well. The company has installed nearly 100 megawatts of rooftop solar panels, reducing electricity costs by 35-40%. The company is currently installing battery energy storage systems (BESS) and preparing products to support post-flood repairs. Private label products account for 21-23% of sales. Net profit for the first nine months was negatively impacted by depreciation, but EBITDA was positive. The second share buyback program was completed in August and will continue to be implemented in accordance with the regulations of the Stock Exchange of Thailand.