Reporting on Company's Financial Performance Quater 1/2008
May 8, 2008
At : ACC/HO 064/51
Re : Reporting on Company's Financial Performance for the Quarter 1/2008
To : President The Stock Exchange of Thailand
Home Product Center Public Company Limited would like to report financial result of company and its subsidiary for the 1st quarter ended March 31,2008 which has been reviewed by the Company's external auditor.
The company's net profit for the three months ended March 31, 2008 is 186.81 million baht representing an increase by 49.35 million baht or 35.90% comparing to the same period of last year. The main reasons are as follows :
1.Net Sales for the three months ended March 31, 2008 is 4,200.07 million baht which increased by 419.10 million baht or 11.08% over the same period of last year. Net sales growth is mainly driven by the sales of new stores.
The gross profit is 993.52 million baht which increased by 129.17 million baht or 14.94% comparing to the same period of last year.
Gross Profit was increased from 22.86% in 2007 to 23.65% in 2008 due to the change of product mix sold toward higher margin products.
2.Rental and Service Income for the three months ended March 31, 2008 is 177.79 million baht which increased by 13.80 million baht or 8.42% over the same period of last year as a result of increase in space rental income of new stores and Homepro Expo event.
3.Other income for the three months ended March 31, 2008 is 123.73 million baht which increased by 21.44 million baht or 20.96% over the same period of last year. The increase in other income was primarily driven by the joint advertising and in-store promotion with vendors and other service revenue from customers.
4.Selling and administrative expenses (SG&A) for the three months ended March 31,2008 is 985.61 million baht which increased by 102.68 million baht or 11.63% over the same period of last year. This SG&A represents 23.47% to sales which slightly increase comparing with 23.35% of the same period of last year. The main increase is due to the increase in salaries, depreciation, public utilities, and expenses of Homepro Expo event.
5.Interest expenses for the three months ended March 31, 2008 is 33.61 million baht which decreased by 13.01 million baht over the same period of last year. This is a result of partial repayment of long term loan and the decline of interest rate both short term and long term.
Please be informed accordingly
Sincerely yours,
(Mr. Khunawut Thumpomkul)
President
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