Report of operating result of Q3/2020 (Summary)
In 3Q20, the Company recorded THB 1,461.16 million in sales, increased by THB 174.25 million or 13.54 % from the same period last year. Majority of sales (70.49%) still came from exports to international markets and sales from foreign subsidiaries of the Company (Myanmar, United Kingdom and Australia). The 3Q20 net profit was THB 72.64 million improved by THB (22.66) million from 3Q19. In term of net profit margin, it has improved to 4.95% compare to the same period last year which is (1.74) %. The profit margins in 3Q20 mainly affected by the following factors:
- The Company continuously and regularly received garbage bags’ orders from foreign customers. Further, the Company also received additional orders due to pandemic of Corona virus 19 (Covid-19) from foreign customers.
- The Company also received Soft Loop (Reusable Bag)’s order from foreign customer and some orders from domestic market. This is in line with business transformation policy of the Company as a result of change in customer’s demand of global packaging industry.
- The Company has been impact from forward contracts that the Company previously entered into for hedging, and the Company has to record loss from mark to market value of such forward contract due to the application of International Financial Reporting Standard (IFRS-9).
- The Company closely manage production costs, therefore, production costs of Consumables has gradually reduced.
- Trend of using plastic packaging has been increased since the pandemic of Corona virus 19 (Covid-19). The products of the Company, that have been positively impacted, consist of garbage bags, reusable bags and flat cut bags.