Centel posts impressive Q4 results with 9% revenue increase

Central Plaza Hotel Plc (Centel), known for operating Centara Hotels and Resorts, posted an impressive financial performance for the fourth quarter of 2023, with a total revenue of 6.02 billion baht marking a 9% increase year-on-year.

The company’s yearly revenue for 2023 was also positive, amounting to 22.5 billion baht. This represented a significant growth of 24% or a revenue increase of 4.33 billion baht compared to the previous year, reported Bangkok Post.

The data, announced to the Stock Exchange of Thailand yesterday, February 27, revealed a strong operational performance for Centel during the fourth quarter and throughout the year ending December 31, 2023.

Interestingly, the surge in the company’s revenue coincided with an increase in international tourist arrivals in Thailand. The last quarter of 2023 saw 8.1 million foreign tourists, a hefty 49% growth from the previous year. The majority of these tourists were from Asia and the Pacific, accounting for 69% of total arrivals.

China, in particular, witnessed a seven-fold increase in its nationals visiting Thailand last year. Malaysians topped the list of tourists by nationality at 16%, followed by Chinese visitors at 13%. Tourists from Russia, South Korea, and India each held roughly 6% of the share.

The year 2023 saw a total of 28.2 million inbound tourists in Thailand, an impressive 1.5 times increase compared to the previous year.

Gross profit

Centel’s gross profit for the last quarter of 2023 stood at 3.27 billion baht, an 8% increase year-on-year, which represented a gross profit margin of 57% of revenue. However, the net profit after an extra item of 425 million baht (US$11,845,039) for the fourth quarter decreased by 70 million baht or 15% year-on-year.

The full-year gross profit for 2023 was 12.3 billion baht, a 21% rise or an increase of 2.17 billion baht from the previous year. This represented a gross profit margin of 57% of total revenue (excluding other income). This was, however, a decrease from 2022 due to a reduced gross profit margin in the company’s food business.

The company also reported a net profit after an extra item from the reversal of impairment on assets netted off deferred tax and depreciation of 1.25 billion baht in 2023. This was significantly higher than the net profit of 398 million baht in 2022, marking an increase of 850 million baht or 214%.

Additionally, Centel recognised a gain from changes in foreign exchange rates in relation to foreign currency loans, amounting to 80 million baht.

As of December 31, 2023, Centel’s total assets stood at 54.2 billion baht, a 13% or 6.04 billion baht increase year-on-year. Trade and other receivables also increased by 292 million baht.

However, cash and cash equivalents saw a decrease of 618 million baht and other current financial assets decreased by 319 million baht compared to 2022.

The company’s total liabilities were 34.1 billion baht, a 17% or 4.91 billion baht rise compared to 2022.

Centel’s total shareholder equity was 20 billion baht, an increase of 1.13 billion baht from 2022, largely due to its increased net profit in 2023 of 1.25 billion baht.