13 Nov 2018 17:08:00
Management Discussion and Analysis Quarter 3 Ending 30 Sep 2018
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2018 Quarter : Quarter 3 Ending : 30-Sep-2018 Note : CTW043/2018 November 13, 2018 Subject : Management Discussion and Analysis for the third quarter of 2018 To : President The Stock Exchange of Thailand Charoong Thai Wire and Cable Plc.(CTW) would like to clarify the Company and its subsidiaries' operating results based on the consolidated financial statements for the third quarter of 2018, three-month period, ended 30 September 2018 as follows: (Unit : Million Baht) Operating Results The third quarter (three-month period) 2018 2017 Change Million Baht % Total revenues 1,994.10 2,322.53 (328.44) (14.14) Profit attributable to equity holders of CTW 65.11 158.64 (93.52) (58.95) Earnings per share (Baht/Share) 0.16 0.40 Profit Profit attributable to equity holders of CTW of THB 65.11 million decreased by THB 93.52 million or 58.95% from profit of THB 158.64 million in the same period of 2017, caused by the following main reasons: Revenue from Sales Revenue from sales of THB 1,994.10 million decreased by THB 328.44 million or 14.14% when compared with THB 2,322.53 million in the same period of the previous year. In the third quarter of 2018, three-month period, the Company and its subsidiaries had revenue from Enameled and non-enameled wire of THB 1,336.87 Million, followed by Power cable of THB 619.38 Million, Communication cable of THB 18.79 Million and Fiber optic cable of THB 15.76 Million, respectively. Other Income Other Income of THB 14.66 million decreased by THB 12.99 million or 46.97% when compared with THB 27.65 million in the same period of the previous year, since a subsidiary received dividend from other long-term investment in other company of THB 10.74 million. Expenses Total expenses of THB 1,932.18 million decreased by THB 214.58 million or 10.00% from THB 2,146.76 million in the same period of the previous year, details were summarized as follows. 1. Cost of Sales Total cost of sales in the third quarter of 2018 of THB 1,854.45 million decreased by THB 222.18 million or 10.70% when compared with THB 2,076.63 million in the same period of the previous year, which varied depending on the decrease in sales. In the third quarter of 2018, the gross profit was THB 139.65 million, decreasing by THB 106.25 million or 43.21% from THB 245.90 million in the same period of the previous year. The gross profit margin was 7.00% which decreased from 10.59% in the same period of 2017. As a result of, the third quarter of 2018, the Company and its subsidiaries set allowance for diminution in value of inventories which were included in the cost of sales while they reversed the allowance for diminution in value of inventories which were deducted from the cost of sales in the same quarter of last year. 2. Selling Expenses Selling expenses of THB 31.11 million increased by THB 6.42 million or 26.02% from THB 24.69 million in the same period of the previous year due to increase in the sales promotion and transportation fee. 3. Administrative Expenses Administrative expenses of THB 46.62 million increased by THB 1.18 million or 2.60% from THB 45.44 million in the same period of the previous year because a subsidiary set up additional allowance for doubtful accounts of THB 1.02 million. 4. Finance Cost Finance cost of THB 10.69 million increased by THB 2.08 million or 24.22% from THB 8.60 million in the same period of the previous year which were mainly the interest expenses of trust receipts. Please be informed accordingly. Sincerely yours, (Mrs. Sununtha Phaengsook) Deputy 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.