PTT Oil and Retail Business PCL (SET: OR) revealed that the overall performance of 9M2024 saw a net profit of THB 4,651 million, which decreased due to the Mobility segment seeing a decline in earnings following the decrease in global oil prices and an increasingly competitive market.
Meanwhile, the Lifestyle segment saw continuous strong performance, with an 8.1% surge in earnings from sales and services and profit from operations before maintenance costs, capital, and income tax (EBITDA) rising 5.2%. Additionally, the company’s net operating cost has gone down 4.6% due to efficient management.
Disathat Panyarachun, CEO of OR also stated that the EBITDA has increased from the food and beverage retail business, even though there was a spike in cost due to the closure of Texas Chicken.
The CEO noted that the performance in 4Q24 is expected to be much better in all businesses due to improving the economy and tourism during the end of the year.
OR has networks of over 4,462 food and beverage retail branches, including Café Amazon, Pearly Tea, and Pacamara Coffee Roasters by Café Amazon, which have a total sales in 9M2024 of 299 million cups, an 8.3% increase from the same period last year, surpassing sales expectation of one million cups per day.
As a result of a rapid change in the business environment, OR has to readjust its strategy to make sure that every investment will yield an appropriate result.
Currently OR is in the process of reevaluating its investment portfolio to account for a change in the business environment, in 3Q24 The company decided to shut Texas Chicken down and sell all of Imsub Global Cuisine Co., Ltd., shares, causing losses and extra item cost totaled THB 552 million. OR believed that the decision would be beneficial in the long term, as the trimming of unprofitable businesses would strengthen the company’s portfolio and create new business opportunities.
The company has initiated a comprehensive digital transformation across all business sectors by collaborating with various partners. The main objective is to integrate technology with the core operational processes of the business and establish an ecosystem that supports future business growth. This initiative aims to elevate the oil and retail business to meet the rapidly changing consumer behaviors in the digital age, while simultaneously creating new opportunities and strengthening the business portfolio. The company is also focused on sustainable business development as well.
