Reporting on Big C Financial Result for Q2 2006
11 August 2006
To:The Director and Commissioner of the Stock Exchange of Thailand
Ref:Reporting on Company Financial Results for the Second Quarter of 2006
Big C Supercenter, PCL is pleased to report the second quarter results
of its company and subsidiaries that have been examined by Ernst & Young
auditors as of 30 June, 2006 as follows:
The operating results of the Company and its subsidiaries for the second
quarter of 2006 reflect a net profit of Baht 478.1 million as compared to
a net profit of Baht 461.7 million over the same period last year. This
second quarter performance is in line with our expectations, representing
an increase of 3.6% over last year.
The increase in the net profit is based on the following reasons:
1. Net Sales during the second quarter of 2006 amounted to Baht
14,967 million for the company and its subsidiaries, which
represented an increase of Baht 1,258 million or 9.2% over the
same period last year. The increase in sales was supported
by the success of our expansion program. Since the beginning
of 2006, two new stores have been opened in Phrae and
Ratchaburi. Besides store expansions, sales from existing stores
were also a significant driving force for our continuous sale growth.
2. Rental and Service Income from tenants for the second quarter
of 2006 was Baht 604 million which represented an increase
of Baht 92 million or 17.9% over the same period last year.
3. Other Income, including income from suppliers subsidies
of in-store promotions, manufacturer promotions and others in
the second quarter of 2006, was Baht 1,255 million, which
represented an increase of Baht 233 million or 22.8% over the
same period last year.
4. Gross Profit of Baht 1,392 million in the second quarter of 2006
represented a slight decrease of Baht 2 million or -0.1% over
the same period last year due to our competitive pricing strategy
to maintain our prices to secure the customer benefit under
unstable economic conditions. However, overall profitability
was still positive and in line with our expectation.
5. Selling and Administration Expense of Baht 2,544 million in
the second quarter of 2006 represented an increase of
Baht 299 million or 13.3% over the same period of last year
which resulted from new store expansion and a one-time
provision expense that was necessary for running the business
smoothly in the long-term.
6. Interest Expense for the second quarter of 2006 was Baht 12 million
which represented a decrease of Baht 1 million or 6.5% over the
same period last year.
7. Corporate Income Tax for the second quarter of 2006 was Baht
212 million, up Baht 8 million over the same period of last year.
Yours very truly,
Mr. Yves Braibant
CEO & President