Sansiri Plc recorded higher sales last year even as the company’s total revenue and net profit were down, reports local media. The decline was due to a decrease in revenue from project sales, which fell 13 percent from the 2016 total. Sales at the company’s projects accounted for 82 percent of total revenue.
While sales revenue was down, Sansiri’s pre-sales were up in 2017. The company earned THB38.6 billion in pre-sales last year, which was a 24 percent increase from its 2016 total. The developer underwent several changes that caused the increase in pre-sales and decline in revenue from project sales.
“The previous year saw significant changes for the company under the Sansiri transformation plan on 4 key management areas: finance, project development, marketing strategy and technology,” says Sansiri Chief Financial Officer Wanchak Buranasiri to The Nation.
One key difference between 2016 and 2017 was the fact Sansiri started to see profit sharing from 2 of the condo development projects under its joint venture deal with BTS Group Holdings. This year the company will transfer units at 6 more condo projects worth a combined THB16 billion this year with some of these also being joint venture developments with BTS Group.
Sansiri has plans to launch 4 new developments in the 1st quarter worth THB12.7 billion combined. One of these, Burasiri Bangna, in February and the company already sold 60 of the pre-sale units. There will be 2 more single-house projects and a condo development as part of the 4 launches.
In total, Sansiri is expected to launch 31 new developments in 2018 worth THB63.2 billion. The company is estimating that it will record THB45 billion in pre-sales this year, which would surpass the record total set by the company. Foreign buyers are expected to account for a significant amount of pre-sales.
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