Mr. Prab Thakral, CEO of Boutique Corporation Public Company Limited (BC), a leader in real estate development under the "Build-Operate-Sale: BOS" business model reveals that the company continues to see positive business recovery in the 3rd quarter of 2023, despite a volatile economic environment and higher interest rate adjustment. At the same time, BC will remain cautious in the following market and economic conditions, whereby the company will employ thoughtful strategies to ensure sustainable growth and success in the long run.
BC's Hotel and Serviced Apartment business group marked significant improvement in operating results when compared to the previous year. The main reason is the recovery of the Thai tourism sector. Currently, there are 9 projects open for service, divided into 2 areas. The first is projects Bangkok, which has an occupancy rate of 82.0% and a total revenue of 66.1 million baht; a slight decrease compared to the previous quarter, but a 31.2% increase when compared to the previous year. The second is projects in other provinces, with an operating income of 34.7 million baht in Q3/2023, a 132.6% increase when compared to the previous year and a 14.4% increase when compared to the previous quarter. This increase can be attributed to the continued recovery of the tourism industry, the upcoming tourist season and the New Year festival.
Summer Point, BC's retail project has also received outstanding growth, with a high occupancy rate of 89% during Q3/2023. The success is mainly driven by the company's strong real estate management team, and the high occupancy rate will be a key factor in attracting investors to invest in the project.
With the operating results for Q3/2023, the company has seen improvement in profit before interest deduction, income tax, depreciation, and amortization (core EBITDA) at positive at 1.1 million baht, compared to a negative level of 14.9 million baht in Q2/2023. Total operating expenses in Q3/2023 is at 42.8 million baht, a decrease of 8.7% compared to Q2/2023, but slightly higher than the 7.7% when compared to the previous year. This increase can be attributed to the increased service offerings, that coincides with rising income.
Boutique International Holdings Limited (BIH), an overseas subsidiary in which BC holds 100% stake, has announced and paid dividends of 200 million baht in January 2023, as well as received an additional compensation of 11 million baht in July 2023 from the sale of the Oakwood Studios project. This further strengthens BC's positioning and outlook for the first 9 months of 2023.
The operating result according to the company's consolidated financial statements for Q3/2023 is at 91.6 million baht, reflecting an outstanding recovery of 74.5% when compared to the previous year. This is largely attributed to the recovery of the tourism sector and opening of hotels, which brings BC's total 9-month revenue to 276.8 million baht, an increase of 91.3% compared to the previous year. A significant growth that reflects a positive overall market outlook. The group reports operating profits before interest, taxes, depreciation, and amortization expense (EBITDA) that improved, being negative 5.3 million baht, from the original negative 20.7 million baht in Q2/2023, while EBITDA also improved in the 9-month period of 2023, an indication of continued recovery.
BC's medical cannabis business operated under Bespoke Life Science Company Limited (Bespoke) has successfully opened 3 new branches in Pattaya, Chiang Mai and Siam Discovery, which marks the first medical cannabis outlet in a large department store in Thailand. Currently, Bespoke has a total of 8 branches nationwide, and is set to open 3 new branches in November 2023, across locations in Phra Khanong, Sukhumvit 24 and Hard Rock Cafe in Chiang Mai. The new branches are expected to be well received by locals and expats in the area, as Bespoke is moving forward with its branch expansion plan by the end of 2023. The company also plans to add new sales channels, with the incorporation of a new income through wholesale.
In addition, the company has recently received additional health clinic licenses for its outlets in Pattaya and Soi Cowboy. The license will help to ensure that the company can continue to operate successfully in the long term, in line with the government's regulations on medical cannabis and Thai Traditional Medicine.
In terms of BC's logistics and storage business under "GO Storage," the company has grown its service level at 33% in March 2023 to a level of 82.3% in September 2023. GO Storage also has plans to rent out further wine storage space to external interested parties.
"In 2023, BC will focus on intensively adjusting our management strategy, with emphasis on efficient cost management, in order to create outstanding and sustainable growth in every business group, according to our business plan," Mr. Prab said in closing remarks.
Source: IR PLUS