22 Feb 2019 17:05:00
Management Discussion and Analysis Yearly Ending 31 Dec 2018
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2018 Quarter : Yearly Ending : 31-Dec-2018 Note : CTW005/2019 February 22, 2019 Subject : Management Discussion and Analysis for 2018's operating results To : President The Stock Exchange of Thailand Charoong Thai Wire and Cable Plc.(CTW) would like to clarify the Company and its subsidiaries' 2018 operating results based on the consolidated financial statements for the year ended 31 December 2018 as follows: (Unit : Million Baht) Operating Results Period of the Year 2018 2017 % Change Total revenues 8,019.04 7,994.84 0.30 Net Profit attributable to equity holders of CTW 287.49 280.99 2.31 Earnings per share (Baht/Share) 0.72 0.71 Net Profit Net profit was THB 287.49 million in 2018, increasing by THB 6.50 million or 2.31% from THB 280.99 million in 2017 caused from the following main reasons: Revenue from Sales Revenue from sales of THB 7,960.09 million in 2018 increased by THB 57.69 million or 0.73% from THB 7,902.40 million in 2017. In 2018, the Company and its subsidiaries had revenue from local customers of THB 4,805.98 million and from overseas customers of THB 3,154.11 million. Other Income Other Income of THB 58.95 million decreased by THB 33.50 million or 36.23% from THB 92.44 million in 2017 because gain on exchange decreased by THB 8.05 million and a subsidiary received the remaining interest receivable totaling THB 15.28 million from trade receivable and dividend income of THB 10.74 million in 2017. Expenses Total expenses of THB 7,646.38 million in 2018 increased by THB 10.43 million or 0.14% from THB 7,635.95 million in 2017, details were summarized as follows. 1. Cost of Sales Total cost of sales of THB 7,283.87 million in 2018, representing 91.50% of sales, increased by THB 49.25 million or 0.68%, which coincided with the sales increase, when compared with THB 7,234.62 million in 2017, representing 91.55% of sales. In 2018, there was the allowance for diminution in value of inventory of THB 60.00 million, due to decrease in the main raw material (copper) price. 2. Selling and Distribution Expenses Selling and distribution expenses was THB 112.20 million in 2018, increasing by THB 3.13 million or 2.87% from THB 109.07 million in 2017, which most were the commission fees, sales promotion and transportation fees. 3. Share of profit (loss) from investment in associate Share of profit from investment in associate company was THB 1.44 million in 2018, increasing by THB 4.29 million or 150.46% from share of profit from investment in associate of THB 2.85 million in 2017 since its a subsidiary recognized share of profit (loss) from investment in Loxpac Hong Kong Co., Ltd., its associate company. 4. Finance Cost Finance cost of THB 37.97 million, increased by THB 4.90 million or 14.80% from THB 33.08 million in 2017, which were mostly interest payments of trust receipts. 5. Tax expenses Tax expenses of THB 69.72 million in 2018 consisted of the corporate income tax of THB 79.91 million and relating to reversal of temporary difference of THB 10.19 million, while Tax expenses of THB 74.87 million in 2017 consisted of the corporate income tax of THB 71.74 million and relating to origination of temporary differences of THB 3.13 million. The separate financial statements for the year 2018, the Company had net profit of Baht 283.54 million, increasing by Baht 46.90 million or 19.82%, when compared with the net profit of Baht 236.63 million in 2017. 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.