Report of operating result of Q2/2021
In 2Q21, the Company recorded THB 1,329.84 million in sales, decreased by THB 63.72 million or 4.57% from the same period last year. Majority of sales (59.63%) still came from exports to international markets and sale in foreign countries contributed by foreign subsidiaries of the Company (Myanmar, UK and Australia).
The 2Q21 net profit (loss) was THB (6.32) million decreased from net profit (loss) of THB 78.91 million in 2Q20.In terms of net profit (loss) margin, it has decreased to be (0.47)% compare to the same period last year which is 5.54%. In 2Q21, the Company has less profit margin compared to the same period last year mainly due to following factors:
- Although, the Company received more orders of reusable bags and fruit and vegetable bags from foreign customers, the shortage of shipping container impacted the revenue of the Company due to the delayed delivery of products.
- the fluctuation of Thai exchange rate which was stable during the beginning of the quarter and tended to be depreciated against US dollar, during the last month of the quarter. Such depreciation creates negative effect to forward contracts that the Company previously entered into, 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).
- Coup and Covid-19 situation in Myanmar effected to delivery of raw material and demand in Myanmar.
- The orders of high cost raw material from 1Q21 effected to high production cost of Consumables in 2Q21.