PTT Oil and Retail Business (OR) is set to divest stakes in several ventures, including restaurant operations, to mitigate losses from underperforming activities and to reassess businesses with uncertain prospects, according to CEO Disathat Panyarachun.
He noted that selling shares is necessary to limit losses and reduce the risk of a further dip in share value.
The company plans to sell its shares in Imsub Global Cuisine Co., which operates various food and beverage brands like Kouen Sushi Bar and Café Amazon in China. Additionally, OR intends to sell its shares in Flash Express, a goods delivery service.
Earlier, OR announced it would cease investments in the American fast-food chain Texas Chicken, resulting in the closure of all its branches in Thailand. This decision concluded a nine-year venture that incurred total losses of 500 million baht.
In Thailand, the fried chicken market is valued at approximately 27 billion baht, with KFC holding a dominant 90% market share, as reported by OR.
Disathat also mentioned that OR may revise its business strategy for Orbit Digital, a joint venture with Bluebik Group focused on advising businesses on digital transformation. OR owns 40% of Orbit Digital, with the remainder funded by Bluebik Group. The collaboration aims to assist OR in leveraging new technologies and exploring fresh business opportunities.
As part of its strategy to reduce losses and reevaluate businesses, OR anticipates an increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin from 27% to 30%.
Disathat expressed that while some business partnerships were intended to enhance the value of both OR and its partners, the results have not met expectations. He acknowledged that limited scaling resources in certain businesses make it prudent to seek new partners.
He stated, “We believe this is a wise decision. Exiting certain businesses positions us for future investments.”
OR is currently in discussions with lifestyle sector firms regarding new investment possibilities, though Disathat declined to provide further details.
In the oil retail sector, OR is moving forward with plans to expand its petrol stations in Cambodia due to the market’s growth potential. The company also aims to restart its oil operations in Myanmar, which were halted due to internal political unrest, resulting in a loss of 400 million baht for OR.
