Tanachira Retail Corporation Public Company Limited (TAN) has announced its financial results for the first half of 2024. The company reported a consolidated revenue of 845.1 million baht, representing a 27.4% increase compared to the same period last year. Net profit, however, slowed down due to increased sales and marketing expenses, as well as expansion of both domestic and international branches to support future growth. TAN has set a target to open 10 new branches in the second half of the year. The company is also aggressively expanding its HARNN brand in China following an overwhelming response, with the first store set to open in Hangzhou and plans to expand to over 2,000 retail points and 50 franchised spas in China by 2027. The company remains confident in achieving its full-year revenue growth target of 20%.

Tanapong Chirapanidchakul, CEO of Tanachira Retail Corporation Public Company Limited, revealed that the company's revenue growth in the first half of 2024 was driven by the increase in same-store sales growth (SSSG), the introduction of special collections, and the growth of new businesses. These factors have played a significant role in diversifying the company's revenue base away from its core brands. Net profit attributable to the company's shareholders increased by 9.2% year-on-year to 79.5 million baht, primarily driven by increased sales and gross profit margin, thanks to effective discount management. However, the increase in sales and marketing expenses and human resources to support future business growth, both domestically and internationally, have put pressure on the bottom line.

Despite the challenges, the company maintains its full-year 2024 growth target of 20%. This is supported by the positive reception of new brands in its portfolio, such as GANNI, Gordon Ramsay Restaurants, and United Arrows, as well as the revenue recognition from the expansion of the HARNN brand in China and the launch of new collections. The company also expects a rebound in consumer spending and tourism in the fourth quarter, which is typically the peak season for the business, along with the government's economic stimulus measures that are expected to be clearer in the second half of the year.

TAN's CEO stated that the company's key strategies for the second half of 2024 include effective marketing communications to drive repeated customer spending and enhance customer experience, cost control to improve profitability, and expansion of branches for high-potential brands, both domestically and internationally.

The company plans to open 10 new branches in the second half of the year. For the lifestyle business, Pandora will open a new branch in Surat Thani, targeting high-income customers in Surat Thani and neighboring provinces. In the fashion business, GANNI and Marimekko will open new stores at Siam Discovery, a strategic location in the heart of the city. The company is also expanding its customer base to the young generation with high purchasing power. In the Food and Beverage business, Gordon Ramsay Bread Street Kitchen & Bar will open its second branch at ICONSIAM, featuring a 180-seat capacity, a 600-square-meter space, a full bar, private dining rooms, and an outdoor area with a Chao Phraya River view. This new branch will offer a premium all-day dining experience, targeting high-end customers, families, and international customers. The first Gordon Ramsay Bread Street Kitchen & Bar at EMSPHERE continues to receive positive feedback.

Additionally, in the Beauty and Wellness business, the company has established HARNN Greater China to expand its business in China, Hong Kong, Macau, and Taiwan. The first store is set to open at Hangzhou Hubin Yintai In77 mall in Hangzhou, Zhejiang Province, China, in November, with plans to expand to 2,000 retail points across China and 50 franchised spas within three years.

"We remain committed to our long-term vision, which will enable TAN to continue to grow and become a leading regional lifestyle group. By building a broad and deep business foundation, whether through expanding our existing branch network or increasing our share of new businesses that will yield significant results in the future. The increased investment and initial stages of new rounds of investment are necessary. We believe that the long-term sustainability of increased revenue generation will drive significant growth in the company's profits in the future. We remain confident that full-year results will grow by 20% as targeted," said Mr. Tanapong.

For more information on the company's financial performance, please visit
https://www.set.or.th/th/market/news-and-alert/newsdetails?id=90686201&symbol=TAN

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