Pruksa Reports 18% Growth in Q1 Net Profit
Scales Up Healthcare Business and Promotes “Live well Stay well” Concept
Pruksa Holding unveils its Q1/2023 financial results, reporting a net profit of THB 652 million, an 18% increase, and total revenues of THB 6,598 million, a 10% increase, compared to Q1/2022. Moving forward with its Seed New Business strategic plan, the company has invested in new businesses following mega trends, to deliver ” Live well Stay well” experiences. Pruksa announced a partnership with Naluri to provide health coaching and counseling services through a digital platform in Thailand.
Mr. Uten Lohachitpitaks, Group CEO, Pruksa Holding Plc., revealed that the growth in Q1/2023 was driven by the expansion of both real estate and healthcare businesses according to the plan announced earlier this year and effective cost and financial management, which allowed the company to achieve a net profit of THB 652 million, an 18% increase, and total revenues of THB 6,598 million, a 10% increase, resulting in a higher gross profit margin of 32.8% compared to 29.7% in Q1/2022. The company maintained a strong financial position with a low net gearing ratio of 0.25x.
The real estate business generated THB 6,030 million in revenues, a 6% increase compared to Q1/2022, due to the continuous transfer of six condominium projects completed in Q3 and Q4/2022, amounting to THB 4,466 million in sales. The successful launch of Chapter One All Ramintra project in March received positive responses from both Thai and foreign customers, achieving around 50% sales. For Q2/2023, the company plans to launch six new projects worth THB 5,910 million, comprising four horizontal projects and two condominium projects. The company expects successful launches similar to Q1/2023. The product portfolio for Q3 and Q4/2023 will increase the proportion of premium products to over 40% of the total project value to be launched in these quarters.
For the first time in Thailand’s real estate industry, Pruksa collaborates with The Walt Disney Thailand, a leader in the entertainment business, to create a joyful experience under the campaign “Magic Brings Happiness to Home, Magic Deals for Happiness.” This campaign aims to make homebuyers’ dreams come true through exclusive activities and promotions under the concept “Bring the joy to your new Home, Dream Comes True.” This collaboration reinforces the brand’s business image of delivering happiness to every family member, aligning with Pruksa’s vision of providing a “Live well Stay well” experience for all customers. Enjoy discounts of up to THB 2 million and 16 special deals (different terms and conditions apply for each project; please inquire at the sales office) across 94 Pruksa projects participating in the campaign, which is available from today until June 30th.
To respond to Pruksa Group’s vision, the company has developed every residence with low-carbon concrete and precast manufactured by Inno Precast Co., Ltd., the first low-carbon precast factory in Thailand. After the previously announced share swap with General Engineering Public Company Limited (GEL) earlier this year, on April 27th, GEL’s Annual General Shareholders’ Meeting approved the deal, which is expected to be completed by the end of May. Recently, Inno Precast started joint marketing with GEL, resulting in over THB 1,200 million in precast presale and installations (Backlog) from external customers, surpassing the company’s target and marking a successful step in the business separation.
In the healthcare business, ViMUT Group’s revenue in Q1/2023 reached THB 412 million, a 69% growth compared to the same period last year. This is due to (1) medical service revenue from ViMUT Hospital exceeding THB 186 million while non-COVID revenue grew over 90%, with a 34% increase in outpatient visits, more complex treatments, and nearly 10% of international patients; and (2) combined with revenue from Theptarin Hospital, which had over THB 226 million in revenue in the past quarter.
Recently, ViMUT Group has expanded its support for the mission of providing a “Live well Stay well ” experience. In late March, the group launched the “SENERA ViMUT HEALTH SERVICE” center on Khu Bon Road, which provides rehabilitation and healthcare services for families and elderly people. In the second half of the year, there are plans to open two more wellness centers in the Pruksa community to further emphasize the group’s commitment to improving the quality of life for residents and promoting healthy communities. Additionally, ViMUT Hospital has expanded its cooperation with Ramathibodi Hospital from only surgery services, to include chemotherapy, and sleep tests, which address sleep apnea and its impact on the body. This aims to provide patients with more convenient access to quality medical services at reasonable prices and reduce waiting times. Furthermore, the group announced a joint venture with Naluri Hidup Sdn Bhd to hold shares in Naluri Therapeutics, a digital health service provider. Naluri Therapeutics offers physical and mental health consultation through its application for business customers (B2B) and the general public (B2C) in Thailand. The service emphasizes holistic healthcare by a team of health coaches from Naluri, consisting of psychologists, nutritionists, doctors, fitness coaches, and career coaches, to help clients achieve their health goals, whether it is weight loss, blood pressure control, diabetes management, cholesterol control, or stress management. This significant step connects the healthcare business to the Thai people and Pruksa residents. With the scaling up of various businesses in the group and the company’s strategic plans, it is expected that the company will be able to achieve its set goals.
