16 May 2016 17:05:00
Management Discussion and Analysis Quarter 1 Ending 31-Mar-2016
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2016 Quarter : Quarter 1 Ending : 31-Mar-2016 Note : CTW023/2016 May 16, 2016 Subject : Management Discussion and Analysis for the first quarter 2016 To : President The Stock Exchange of Thailand Charoong Thai Wire and Cable Plc.(CTW) would like to clarify the Company and its subsidiaries' the first quarter 2016 operating results based on the consolidated financial statements for the three-month period ended 31 March 2016 as follows: (Unit : Million Baht) Operating Results The first quarter (three-month period) 2016 2015 % Change Total revenues 1,191.79 1,405.49 (15.20) Net Profit (Loss) attributable to equity holders of CTW (8.50) 7.03 (220.90) Earnings (Loss) per share (Baht/Share) (0.02) 0.02 Net Profit (Loss) The Company and subsidiaries had net loss of THB 8.50 million, decreased by THB 15.53 million or 220.90% from net profit of THB 7.03 million in the same period of 2015 caused by the following main reasons: Revenue from Sales Revenue from sales of THB 1,177.07 million decreased by THB 196.49 million or 14.31% from THB 1,373.56 million in the first quarter of 2015 since many projects have been postponed due to the economic slowdown. Moreover, there was the severe price competition, resulting in a decrease in revenue from sale of the Company and subsidiaries. Other Income Other Income of THB 14.72 million decreased by THB 17.21 million or 53.90% from THB 31.94 million in the same period of 2015, since there was gain on exchange rate of THB 10.67 million in the first quarter of 2016, which decreased by THB 12.00 million from the first quarter of 2015 due to Thai baht weakened. Moreover, interest income decreased by THB 4.08 million due to decrease in short term investment and interest rate. Expenses Total expenses of THB 1,188.88 million decreased by THB 200.78 million or 14.45% from THB 1,389.66 million in the first quarter of 2015, details are summarized as follows. 1. Cost of Sales Total cost of sales of THB 1,122.60 million decreased by THB 201.30 million or 15.21% from THB 1,323.90 million in the same period of 2015, which varied depending on sales. In addition, they reversed reduction of cost to net realizable value of inventories during the period of THB 48.38 million due to increase in the main raw material (copper) price. 2. Selling Expenses Selling expenses of THB 22.29 million decreased by THB 2.80 million or 11.14% from THB 25.08 million in the same period of 2015 which the most were the reduction of service and consulting fees. 3. Administration Expenses Administration expenses of THB 43.99 million increased by THB 3.32 million or 8.15% from THB 40.68 million in the same period of 2015 due to increase in allowance for doubtful account and its a subsidiary's remuneration. 4. Finance Cost Finance cost of THB 5.32 million decreased by THB 5.30 million or 49.86% from finance cost of THB 10.62 million in the same period of the previous year due to the repayment of trust receipts before maturity. 5. Tax expenses Tax expenses of THB 6.90 million, decreased by THB 1.94 million or 21.95% from tax expenses of THB 8.83 million in the same period of the previous year since the Company and its subsidiaries had a loss before tax expenses of THB 3.11 million, while they had profit before tax expenses of THB 5.46 million in the first quarter of 2015. Please be informed accordingly. Sincerely yours, (Mrs. Sununtha Phaengsook) Asst. Managing Director (Finance) This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.