Mr. Prab Thakral, CEO of Boutique Corporation Pcl, which is a leader in real estate development under the "Build-Operate-Sale" (BOS) business model, has disclosed the operating results for the second quarter of 2023, showing a remarkable recovery of 75.9% growth compared to the same quarter in the previous year. This notable improvement in performance can be attributed primarily to the recovery of the tourism industry and operational enhancements. In the first half of the year, the total income more than doubled in comparison to 2022, indicating significant growth and reflecting a positive outlook for the overall market.
In the second quarter of 2023, the mixed-use retail project "Summer Point" achieved an impressive occupancy rate of 88%. This success can be attributed predominantly to the company's robust property management team. Such a substantial level of occupancy is highly attractive for generating investor interest in the acquisition of this project.
The revenue from space rental increased to 15.3 million baht, marking a rise of 15.5% compared to the previous quarter and an impressive 87% surge compared to the preceding year. This growth was primarily driven by the rising occupancy rate and rental fees, which can be attributed to the effectiveness of BC's project management team. Consequently, the EBITDA margin level has elevated to 54.2%.
In the second quarter of 2023, the company successfully managed a total of 9 hotel and serviced apartment projects, spread across different areas in Bangkok. These projects collectively generated a total income of 69.5 million baht, reflecting a substantial increase of 90.2% compared to the previous year. Furthermore, in other provinces, the company's projects contributed to a total income of 30.4 million baht, marking a significant rise of 114.5% compared to the previous year.
Additionally, BC has initiated the development of a new commercial project in the Charoen Krung area, known as the "Cove Hill" project. This endeavor is anticipated to reach completion in Q4/2023. Moreover, the company acquired land in Soi Sukhumvit 5 through a subsidiary in January 2023, with plans to embark on another hotel project under the JONO X brand
In the medical cannabis business operated by Bespoke Life Science Co., Ltd. A Company under BC achieved success by opening its fourth store under the brand "KANA" in the Chong Nonsi area in April 2023. Subsequently, a fifth branch was inaugurated at Sukhumvit Soi 23 (Soi Cowboy) in June 2023. More recently, in July 2023, the company significantly extended its presence by launching two new outlets in prominent locations: Pattaya and Siam Discovery. This expansion establishes Kana Pure as the first cannabis outlet to operate within a large, high-end mall.
Moreover, the self-storage business "Go Storage," operated by Boutique Logistics Co., Ltd. (a subsidiary), demonstrated substantial growth, increasing its occupancy rate from 33% in March 2023 to 67% in June 2023.
"The company's performance continues to recover. Despite the overall economic volatility, the company remains focused on implementing prudent strategies to foster sustainable growth. It is anticipated that the second half of the year will exhibit stronger growth compared to the first half. Alongside the BOS business model, the company has consistently attracted potential buyers. As we prepare to enter the high tourism season, there are expectations for enhanced performance across all business segments," said Mr. Thakral.
Source: IR PLUS