Thai home improvement retailer Siam Global House saw a drop in revenues during the first quarter as the slowdown in the economy took a toll on consumer spending. The company disclosed consolidated revenues of 8.933 bn Thai baht (THB, EUR 240 mio) for January to March 2023, a 7.3 per cent reversal from the same quarter in the previous year. "This is due to the decrease in sales from slowing economic conditions and a price reduction of steel products according to global market prices, which resulted in a decrease in overall sales and gross profits," it stated.
Following a surprise 1.5 per cent contraction in GDP in the last quarter of 2022, Thailand's planning agency revised the country's economic prospects this year to 2.7-3.7 per cent, down from an earlier forecast of 3-4 per cent. Ahead of the release of official GDP figures for the first quarter of 2023, Thailand's central bank gave notice that the country's economy slowed in March, but added that the first three months of the year saw an improvement from the previous quarter.
Global House's main operations in Thailand still contributed most of the revenues, yielding THB 8.78 bn. Despite the addition of two new outlets from the same quarter the previous year, however, the take was lower than the THB 9.48 bn Global House made on its home turf in the comparable period.
Meanwhile, the share of Cambodia, where Global House operates a store via a subsidiary, is down to THB 144.8 mio from THB152.4 mio in the same quarter last year (-5 per cent). Myanmar, where Global House holds an interest in Pro1 Global via Global House International -- a joint venture with the Siam Cement Group -- accounted for THB 2.87 mio after making no contribution in the first quarter of 2022.
The contributions of Indonesia's PT Catukarda Depo Bangunan and Laos' Souvanny Home Center, where Global House holds interests through its international holding company, were not disclosed.
The company opened one new store in Thailand in the first three months of 2023, bringing its total count to 78. It plans to open six more branches in the country to end this year with 84.