07 May 2018 17:52:00
Management Discussion and Analysis Quarter 1 Ending 31 Mar 2018
Management Discussion and Analysis Company name : BANGSAPHAN BARMILL PUBLIC COMPANY LIMITED Year : 2018 Quarter : Quarter 1 Ending : 31-Mar-2018 Note : The Company would like to disclose the Financial Statements (reviewed) for the Quarter ended 31 March 2018 with management explanation as following. Income Statements Analysis, Comparison of Quarter 1 of 2018 VS Quarter 1 of 2017 Revenue from sales in Q1 of 2018 was at Baht 568.4 million, decreased by 14% yoy, due to the decrease in sales volume as a result of the slowdown in construction industry. The steel price has continually decreased in Q1 of 2018. Sales volume in Q1 this year of 29,831 MT was 24% lower than the sales volume in the same period last year. Meanwhile, the average selling price was in the downward trend as a result of the market mechanism and the world steel bar price. In the first quarter of 2018, the Company's gross profit margin was at 4.7% comparing to gross profit margin of 13.2% in the same period last year. This derived from the reduction of the spread between selling price and cost of the major raw material, steel billet, since the cost of billet increased at the higher rate than the selling price of steel bar. Cost of steel billet generally accounts 85-90% of total cost of the goods sold, therefore, the decrease in Metal Spread has the major impact to the gross margin. The selling expenses in Q1 of 2018 and 2017 were at Baht 6.9 million and Baht 12.8 million, respectively. The major expense was the transportation cost which directly related with the sales amount at the approximate rate of 1-2%. The administrative expenses which most of them represented the employee expenses were slightly decreased from the same period of last year. As a result, the Company had the net income of Baht 10.8 million in Q1 of 2018, comparing to the net profit of Baht 40.8 million in the same period last year. Analysis of Statement of Financial Position, for the Quarter Ended 31 March 2018 As at 31 March 2018, the Company's total assets, Baht 2,010.7 million, were in the same level as Baht 2,012.3 million at the end of 2017. Cash on Hand and Trade Receivables were increased while Inventory was reduced from the end of 2017. The Company's average periods of trade receivable and inventory held were at 53 days of revenue from sale and 3 days of cost of the goods sold, respectively. Total liabilities as at 31 March 2018, Baht 60.6 million, were decreased from those of Baht 72.8 million at end of 2017. The major decrease came from Trade Payable as a result of the reduction in the purchase of billet in Q1 of 2018. The Company's liquidity ratio (Current Assets / Current Liabilities) as at 31 March 2018 was still at a high rate, 21.6 times, due to the decrease of trade payable. This ratio as at 31 December 2017 was at 17.5 times. Moreover, the Company's debt-to-equity ratios as at 31 March 2018 and 31 December 2017 were still low at 0.03 and 0.04 time, respectively. These were because the Company funded most of capital from shareholders' equity instead of long term loan. 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.