News

August 8, 2008

At : ACC/HO 089/51

Re : Reporting on Company's Financial Performance for the Quarter 2/2008

To : President The Stock Exchange of Thailand

Home Product Center Public Company Limited would like to announce financial result of company and its subsidiary for the 2nd quarter ended June 30, 2008 which has been reviewed by auditor.

A : Company Performance for 2nd Quarter 2008 The company's performance for the three months ended June 30, 2008, the company's net profit is 200.04 million baht representing an increase by 31.86 million baht or 18.94% comparing to the same period of last year. The main reasons are as follows :

1.Net Sales for the three months ended June 30, 2008 is 4,468.35 million baht which increased by 684.33 million baht or 18.08% over the same period of last year. Net sales growth is driven by an increase in comparable store sales growth and the sales of new store.

The gross profit is 1,040.21 million baht which increased by 166.69 million baht or 19.08% comparing to the same period of last year. Gross Profit was increased from 23.08% in 2007 to 23.28% in 2008 due to the improvement of cost of goods sold management.

2. Rental and Service Income for the three months ended June 30, 2008 is 122.61 million baht which increased by 7.75 million baht or 6.74% over the same period of last year as a result of increase in space rental income.

3. Other income for the three months ended June 30, 2008 is 138.97 million baht which increased by 32.36 million baht or 30.35% 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 June 30, 2008 is 979.10 million baht which increased by 141.16 million baht or 16.85% over the same period of last year. This SG&A represents 21.91% to sales, which is slightly decreased,comparing with 22.14% of the same period of last year. The main increase in absolute amount is due to the increase in salaries, rental and service charge, energy related cost, depreciation, marketing and promotion expenses.

5. Interest expenses for the three months ended June 30, 2008 is 29.75 million baht which decreased by 17.33 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.

B : Company Performance for 1st Half 2008 The company's performance for the six months period ended June 30, 2008, the company's net profit is 386.85 million baht representing an increase by 81.21 million baht or 26.57% comparing to the same period of last year. The main reasons are as follows :

1. Net Sales for the six months ended June 30, 2008 is 8,668.42 million baht which increased by 1,103.43 million baht or 14.59% over the same period of last year. Net sales growth is driven by an increase in comparable store sales growth, new store expansion and sales from Homepro Expo event. The gross profit is 2,033.73 million baht which increased by 295.86 million baht or 17.02% comparing to the same period of last year. The gross profit margin stands at 23.46% of sales which increased from 22.97% in the same period of last year due to the change of product mix sold toward higher margin products.

2. Rental and Service Income for the six months ended June 30, 2008 is 300.39 million baht which increased by 21.55 million baht or 7.73% over the same period of last year as a result of increase in space rental income of new store and Homepro Expo event.

3. Other income for the six months ended June 30, 2008 is 259.78 million baht which increased by 50.88 million baht or 24.36% 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 six months ended June 30, 2008 is 1,961.80 million baht which increased by 240.93 million baht or 14.00% over the same period of last year. This SG&A represents 22.63% to sales, which is slightly decreased,comparing with 22.75% of the same period of last year. The main increase in absolute amount is due to the increase in operational cost of the new store particularly, salaries,rental and service charge, energy related cost, depreciation, marketing and promotion expenses, and also expenses of Homepro Expo event.

5. Interest expenses for the six months ended June 30, 2008 is 63.36 million baht which decreased by 30.34 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.

Sincerely yours,

 

(Mr. Khunawut Thumpomkul)
President

 

 

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