Page 220 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

III Revenue from sales from food segment was THB 69,600 million, decreased by 6.8% from the same period
of last year. This was mainly due to the decrease in sales of the food segment in Thailand. As a result of
the first quarter of last year, prior to the implementation of the lockdown measures, consumers had a lot of
stockpiling. While in the current year, the situation of the ongoing COVID-19 pandemic resulted in customers
being cautious in their spending. In addition, the decreased number of tourists in major tourist provinces,
including the temporary and permanent store closure of the convenience stores and the adjustment of
operating hours have adversely affected the sales as well. However, stores located near residential areas
and the Tops daily model achieved a higher sales growth. In addition, the Company has also constantly
focused on developing sales through omnichannel platforms, specifically Tops App (for users in Thailand),
GO! App (for users in Vietnam), various online channels, including Quick Commerce with partners,
leading omnichannel sales increased by 171% compared to the same period of last year.

2. Revenue from rental services was THB 4,990 million, decreased by 10.9% from the same period of last year.
This was mainly due to temporary closure of some shopping malls according to the measures enforced by the government
measures especially in the third quarter. While the COVID-19 pandemic situation in this year remained unsolved,
therefore the Company has continued to provide tenant’s relief measure by giving proper rent discount for tenants
who couldn’t operate their business as usual on a case-by-case basis. Moreover, the Company returned
the discount of land and real estate tax from the tax relief package from the government to the tenants.

3. Revenue from rendering of services was THB 826 million, decreased by 31.9% from the same period of last year,
which was mainly due to temporary closure of food center according to the government measure in the third
quarter and the reducing of service areas in food center from government social distancing measure.

4. Gross profit was THB 45,944 million, increased by 2.1% from the same period of last year. Main components of
the gross profit were as follows

• Gross profit from sales was THB 41,893 million, increased by 4.5%, which is in line with an increase of sales.
The Company has higher gross profit margin in all segments, which was 23.8%, compared to 23.2% from
the same period of last year. For fashion segment, this was mainly due to an improvement of product assortment
that able to satisfy customer needs and the adjustment of discounts offered to customers. In addition, this resulted
from more sales of higher margin products. For hardline segment, the increased from that of the previous year
thanks to Thai Watsadu which came from the reduction of promotional campaigns, increase sales mix of private
label products and higher steel prices as well as consolidation with COL since February this year. For food segment,
gross profit margin was slightly increased from the improvement of product assortment.

• Gross profit from rental services and rendering of services was THB 4,051 million, decreased by 17.2% from
the same period of last year and gross profit margin was 69.7%, compared to 71.9% from the same period of
last year, which was mainly due to rent discount provided to tenants who couldn’t operate their business as usual.

5. Selling expenses were THB 40,363 million, decreased by 0.4% from the same period of the last year. This was
mainly due to the Company maintains its policy in managing costs and expenses under lockdown measure,
for example, controlling rental, utility, advertising, and promotion expenses. However, there was an increase
in expenses related to COVID-19 prevention.

6. Administrative expenses were THB 16,705 million, increased 0.8% from the same period of last year.
This was mainly due to personnel expenses increased from consolidation of COL, together with Bubble & Seal
project to prevent the outbreak as clusters at the warehouse of Thailand food business, the expenses regarding
technology (IT) to support omnichannel growth, and losses on foreign exchange. However, obsolete and shrinkage
inventory provision expenses decreased.

220 Annual Report 2021 (Form 56-1 One-Report)