COM7 adjusts its target for 2023, revenue grows 20%, believes the second quarter has a good trend, more people spend more in Songkran along with plans to expand branches by the end of the year to 1,400 from locations across the states Greater focus on independent branches, confident that the new government’s wage policy will not affect the company’s costs.
COM7 mobile phone sells well, profit exceeds 3,037 million, grows 15.5%, gives a dividend of 0.75 baht
“Apple” is proud that iPhone sales are rising to new heights. Although the global economy is at risk of recession
Mr revealed Narong Sriwanwit, Chief Operating Officer Sales and Retail Business, Com7 Public Company Limited or COM7 overview of this year’s performance, moving forward as planned. by adjusting the revenue target to grow 20% from the previous year
However, the trend in the second quarter of 2023 has a good direction continuing in April, even during Songkran. and there are still good signs in the first half of May ’23 Therefore, it is expected that the first half of this year will grow more than the first half of the previous year.
“In April, the numbers weren’t bad at all. Songkran usually more people to travel together. rarely buy a lot But this time, this is the first Songkran that people can go back to the fullest 100%, so the spending has increased a lot. The products we have increased a lot, such as speakers, speakers, because Songkran has a lot of music playing, the sales are very good, gross profit is also good. We think Q2 was a very good quarter for us. And probably better than last year. ” Narong said Mr
Although the number of branches in the first quarter of 2023 was 1,284, an increase of 124 branches from the end of 2022, including BaNANA, Bb, B-Play, BKK, BeBePhone, E-quip, Franchise, iCare, King Kong Phone, Studio7, Siop True from .Com7, U-Store and Brand store, most of them increase branches from investing in the acquisition of BeBePhone store management rights, a total of 106 branches, including the continuous opening of new stores. and closing unprofitable branches
In addition, by the end of the year 2023, the number of branches will increase to 1,400 branches, with branches covering the states. Focus on opening independent stores (outside department stores) Currently, there are around 60 independent stores, with 80 expected by the end of the year.
“Branches expansion, if it’s still good, we will continue to expand. In terms of the effect of online sales normal customer behavior part of the purchase from us It is still a product that we still need to recommend. Or he bought it at home and he still feels relief as if it was broken, to whom would he return? Normally, if the customer buys it and it’s broken, they’ll come back to the same store. then find the same employee So it’s as if the online ones don’t eat us at all.” Narong said Mr
About the pharmacy business under the Dr.Pharma brand that has invested with the company Currently Bangkok Dusit Medical Services Public Services Limited or BDMS has opened 6 branches in a variety of formats, independent and in gas stations. But there may be costs in having to wait for more branches. In order to reach the break-even point, it is expected that the target will be expanded to 15-20 branches by the end of 2023.
Although pet restaurants under the “Pet Paw” brand name are currently open for pilot schemes, one branch is expected to have 10-15 branches by the end of the year.
about the wage increase due to the new government policy COM7 Sales and Retail Business Chief Operating Officer sees that it does not affect the cost of the company. because workers do not receive income from minimum wage But part of the income comes from commissions. Combined, 1 worker earns around 20,000 baht per month.
“If the government’s new policy is true Wages are likely to increase for sure, but most of our workers are not living on the minimum wage anyway. Normally, let’s say 100 baht is income from salary, 50%, and the rest is commission. I guess we usually pay them more than minimum wage anyway. On average, we pay about 20,000 baht per person per month. The more sales, the higher the commission Big stores like Mega Bangna that sell well, commission plus salary can be 50,000 baht. Narong said Mr
The 4 main actions that COM7 will focus on are:
1. Accessories (OEM) Both sell through leading brands (Inter Brand), 85% of the market, and the penetration of House Brand products, with BeBePhone stores as an important expansion base. This year’s sales are expected to be 500 million baht and increasing gross profit (GP). Because House Brand has around 20% more GPs than Inter Brand.
2. U-Fund Loan project for customers to be able to pay in installments It has a customer base of about 186,000 people and has borrowed about 5,000 million baht. Customers have repaid about 2,600 million baht with NPL continuously decreasing at about 3.5%.
3. Trade in Program or old campaigns to exchange for new ones Channels are expanded by collaborating with brands. More successful continues to BaNANA Sure, selling used mobile phones, excellent quality, guaranteed and inspected by the BaNANA store, since in 2022 COM7 has received 60,000 used equipment / year, preparing to open Shop in Shop format in the BaNANA store first branch 15 June
In addition, the tourism trend has improved. opening a campaign Rent a mobile phone worldwide in BaNANA starting at 199 baht per day because the company has used and used equipment. The service will start from 1 June onwards.
In addition, the trend of the iPhone for life campaign is excellent and different, allowing everyone to easily own an iPhone and be able to change their iPhone every year, supported by financial tools from U-Fund.
4. iCare Insurance It will help manage the risk throughout the company. Putthadharma Insurance Public Company Limited, who invested in the company in the third quarter of last year, had a loss of 36 million baht in the fourth quarter of 2022 and managed to turn back to a profit of 6.5 million baht in the first quarter of 2023 and has a tendency to grow on a good future
Although the overall performance for the first quarter of 2023 had a total income of 17,309.1 million baht, an increase of 17.9%, a gross profit of 2,375.8 million baht, an increase of 18.7% and a net profit of 873.7 million baht, an increase of 11.6% from the same last year’s period.
The products in the Smartphone group accounted for 56%, Accessories 17%, Tablet 14%, and other 2%, growing in all business groups. With the exception of the IT Product group, which accounts for 10% of the total portfolio, the trend is downward according to the global market situation. Previously, there were supporting factors during COVID-19 and Working from Home.
The newly launched Apple products are coming out. The price is higher compared to the previous model COM7 has marketing to support sales growth, including products in the group of accessories and house brand products with a relatively high gross margin.
