MD's report Operating Results for the Q1/2008
May 8, 2008
Managing Director's Report
Operating Results for the 1st. Quarter 2008
SVI posted quarterly consolidated revenue in USD term for the 1st. Quarter 2008 at USD 48.9 Million (Baht 1,579 Million), 36% higher than the same quarter of last year, but inline with revenue of Q4, 2007. The revenue growth in "Baht" was 24% as compared with the same quarter last year, due to strengthen of Baht, 9% year on year (Average Q1'07: Baht 35.46 Vs Average Q1'08 : Baht 32.29 per USD). The revenue growth was driven by strong demand on Industrial and Telecom products with the continual growth in European market. The company also had added capacity to meet this growth
Total Consolidated Gross Profit for the 1st.quarter 2008 was Baht 148 Million or 9.4% of revenue, higher than the same quarter last year by Baht 11 Million. Total Gross Profit of the company this quarter was Baht 143 Million or 9.1% of revenue, representing a decrease of 1.7% (YOY) and 1.8% (QOQ) respectively. This was mainly caused by strengthen of Baht that impacted to materials costs couple with higher depreciation costs for additional equipment bought to support the increase of capacity. There was no significant difference of the company's and consolidation's Gross Profit because Tianjin's plant was not operating in full capacity.
Selling and Administrative expenses of the company and consolidated expenses for this quarter were Baht 51 Million and Baht 63 Million or 3.2% and 4% of revenue respectively. The company and consolidated expenses were lower than the same period of last year by Baht 18 Millions and Baht 10 Millions, mainly resulted by the reversal of doubtful bad debt, amounted to Baht 17 Millions being paid this quarter. As compared to previous quarter, both the company and consolidated expenses were lower by Baht 21 Million and Baht 19 Million respectively.
SVI posted Net Profit, before subsidiaries consolidation, for the 1st. Quarter 2008 of Baht 123 Million, an increase of Baht 41 Million or 50% as compared to the 1st Quarter 2007, or improved from 6.4% to 7.9% of revenue. This mainly resulted by higher revenue, reversal of doubtful bad debt and gain on foreign currencies. The company's consolidated net profit was Baht 113 Million, higher than the same quarter last year by Baht 38 Million and improvement of 51%. The consolidated net profit this quarter as compared to the 4th quarter last year was Baht 8 Million lower, mainly related to strengthen of Baht, caused to less revenue in term of Baht.
1
Profit & Loss Comparison Table - Q1'08 vs Q1'07
|
Unit : "Mil" Baht |
Consolidated
|
The Company |
% | ||
|
Q1-2008 (a) |
Q1-2007 (b) |
Q1-2008 (c) |
Q1-2007 (d) |
Variance = (a)-(b) (b) | |
| Net Sales |
1,579 |
1,270 |
1,567 |
1,272 |
24% |
| Total Costs of Sales |
1,431 |
1,133 |
1,424 |
1,134 |
26% |
| Gross Profit |
148 |
137 |
143 |
138 |
8% |
| Total Operating Expenses |
(63) |
(73) |
(51) |
(69) |
(14)% |
| Operating Profit |
85 |
64 |
92 |
69 |
33% |
| Interest Income (Expense) |
(2) |
(1) |
(2) |
(0) |
200% |
| Exchange Gain (Losses) |
15 |
4 |
15 |
4 |
275% |
| Other Non-Operation Income (Expense) |
19 |
9 |
22 |
10 |
111% |
| Net Income Before Tax |
117 |
76 |
127 |
83 |
54% |
| Corporation Tax |
(4) |
(1) |
(4) |
(1) |
300% |
| Net Income after Tax |
113 |
75 |
123 |
82 |
51% |
Comparison of Balance Sheet as at 31 March 2008 with year end 2007 as follow:
| Unit : "Million" Baht |
Consolidated |
The Company | ||
|
31 Mar' 08 |
31 Dec' 07 |
31 Mar' 08 |
31 Dec'07 | |
| Current Assets | ||||
| Cash and current investment |
974 |
559 |
952 |
521 |
| Accounts Receivable |
1,100 |
1,099 |
1,085 |
1,094 |
| AR - Subsidiaries |
0 |
0 |
14 |
24 |
| Inventories |
1,341 |
1,155 |
1,312 |
1,133 |
| Other Current Assets |
41 |
22 |
35 |
19 |
| Total Current Assets |
3,456 |
2,835 |
3,398 |
2,791 |
| Current Liabilities | ||||
| Short term loans |
27 |
1 |
25 |
1 |
| Accounts Payable |
1,029 |
750 |
985 |
740 |
| AP - Subsidiaries |
158 |
148 |
181 |
156 |
| Other Current Liabilities /Accruals |
240 |
246 |
228 |
233 |
| Total Current Liabilities |
1,454 |
1,145 |
1,419 |
1,130 |
| Working Capital |
2,002 |
1,690 |
1,979 |
1,661 |
| Property, Plant, Equipment and other assets |
780 |
791 |
888 |
899 |
| Total Net Assets |
2,782 |
2,481 |
2,867 |
2,560 |
| Financed by : | ||||
| Long-term Debt |
187 |
3 |
187 |
3 |
| Net equity |
2,595 |
2,478 |
2,680 |
2,557 |
| Total Long-term Financed |
2,782 |
2,481 |
2,867 |
2,560 |
The Company and consolidated financial status as of 31 March 2008 showed total current assets of Baht 3,398 Million and Baht 3,456 Million respectively. This represented an increase of Baht 607 Million and Baht 621 Million as compared to 31st December 2007. The increase of consolidated current assets was mainly due to an increase of cash of Baht 415 Million, inventory of Baht 186 Million and other current assets of Baht 19 Million. The increase of cash was mainly generated by operation of Baht 244 Millions and long term loan of Baht 200 Millions partially offset with the purchase of equipment accounted to Baht 47 Millions.
Total liabilities for the Company and Consolidated Financial Statement recorded at Baht 1,606 Million and Baht 1,641 Million respectively. The consolidated total liabilities were increased by Baht 494 Million from 31st December 2007. This was mainly due to long term, in the amount of Baht 200 Million being made this quarter for supporting the expansion of capacity and the increase of trade payable of Baht 279 Millions for the purchase of materials to support the demand next quarter.
The consolidated Shareholder's equity as at the end of 1st Quarter 2008 was Baht 2,595 Million, an increase of Baht 116 Millions from the end of last year, mainly due to an increase in retained earnings derived from net profit of Baht 113 Million and translation gain of Baht 3 Million upon consolidation of subsidiaries' accounts this quarter . The Company Shareholder's equity were Baht 2,680 Million, an increase of Baht 123 Million compared with that the end of last year, resulted by net profit generated this quarter by Thailand plant.
_____________________
Mr. Pongsak Lothongkam
Managing Director
3
_____________________
Mr. Pongsak Lothongkam
Managing Director
Attachments
