Report of operating result of Q1/2020 (Summary)
In 1Q20, the Company recorded THB 1,238.61 million in sales, decreased by THB 117.49 million or 8.66% from the same period last year. Majority of sales (65.64%) still came from exports to international markets and sale in foreign countries contributed by foreign subsidiaries of the Company (Myanmar, UK and Australia). The 1Q20 net profit (loss) was THB 0.92 million increased from net profit (loss) of THB (19.84) million in 1Q19. In term of net profit (loss) margin, it has increased to be 0.07% compare to the same period last year which is (1.45%) doe to 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 new 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 reduction of non-recurring expenses
- the pandemic of Corona virus 19 (Covid-19) effect to the continual depreciation of Thai exchange rate which is benefit to the Company as an exporter, however, such depreciation also 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).
- The exchange rate of Myanmar Kyat against US Dollar had been stable. Therefore, the risk from MMK had been limited.
- Price of raw material continually reduce and 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 cur bags.