Central Retail Corporation, or CRC, has lowered its 2026 revenue target to growth of 2-3%, down from 4-5% previously, because the economy remains highly uncertain. It is targeting EBITDA growth of 6-8% and keeping SG&A expenses at no more than 26.3% of total revenue, while preparing a capital expenditure budget of 12 to 14 billion baht to expand its business in both Thailand and Vietnam. It also expects to close the acquisition of AEON Thailand, the owner of MaxValu, by the end of September. Chief Financial Officer Panet Maharattananurak said in an earnings call that gross margin is expected to be 0.60-0.70%, compared with an earlier forecast of staying flat. Same-store sales remain positive in the low single digits in both Thailand and Vietnam, with the Food group growing most strongly, the Fashion group posting positive growth, and the Hardline group slightly negative. The AEON Thailand deal, which operates MaxValu with 30 ready-to-operate stores and about 900,000 members, will immediately expand the company's customer base and strengthen its points accumulation system. On store expansion plans, Thai Watsadu has 70 branches in total and plans to expand to more than 100 branches in the future. In Vietnam, the company is preparing to open three more GO Hypermarket stores and several more Mini Go locations in the second half of the year.
Central Retail Corporation Public Company LimitedCRC cuts revenue target due to economic uncertainty, indicating weaker consumer demand.
Acquisition by CRC expected to close by end of September, providing immediate expansion and customer base.
