Success in Maintaining 2017’s Margin
RALS posted respectively the downturn of 4.0% y-y and 0.5% y-y in net sales and net profit; still, it posted a slight growth in 2017’s margin compared to 2016’s margin. The authority’s policy left electricity tariff and subsidized petroleum price unchanged until 2019 is a takeaway factor underpinned RALS’s success in maintain 4Q17’s gross profit at the average of 40%.
Another to the success in maintaining 4Q17’s margin, the closing of tens of its supermarkets in 2017 was capable of stopping the last 3-year loss RALS suffered from the operation of loss-making supermarkets. In ahead years, it likely paves a way for beefing up the portion of consignment products consistently posting the last-3-year growth in sales.
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