Reporting on Big C Financial Results for Q 1 2007
15 May 2007
To: The Director and Commissioner of the set
Ref: Reporting on Company Financial Results for the first quarter of 2007.
Big C Supercenter PCL is pleased to report the first quarter results of its company and subsidiaries that have been examined by Ernst & Young auditors as of 31th March, 2007 as follows:
The operating results of the Company and its subsidiaries for the first quarter of 2007 reflect a net profit of Baht 673 million, compared to a last year net profit of Baht 657 million which represented an increase of Baht 16 million or 2 %. The result of this quarter was based on the following reasons:
1. Net sales during the first quarter of 2007 amounted to Baht 14,487 million for the company and its subsidiaries, which represented an increase of Baht 968 million or 7.2% over the same period of last year. Our increase came from our existing store and new store performance along with successful marketing activities.
2. Rental and Service Income from tenants for the first quarter of 2007 was Baht 647 million which represented an increase of Baht 71 million or 19% over the same period last year, such increase resulted from new store expansion of 2006 that provided more rental space.
3. Other Income including income from suppliers subsidies of in-store promotions, manufacturer promotions and others in the first quarter of 2007 was Baht 1,603 million, which represented an increase of Baht 259 million or 19.3% over the same period last year.
4. Gross Profit of Baht 1,286 million in the first quarter of 2007 represented a decrease of Baht 35 million or 2.6% over the same period last year. A decreasing of gross profit resulted from heavily marketing campaigns to attract the customer during the first quarter 2007 due to the lower customer spending when compared over the same period last year.
5. Selling and Administration Expenses of Baht 2,542 million in the first quarter of 2007 represented an increase of Baht 273 million or 12 % over the same period of last year figures which was caused by new store expansion.
6. Interest expenses for the first quarter of 2007 was Baht 21 million which represented a decrease of Baht 4 million or 23.5% over the same period last year.
7. Corporate income tax for the first quarter of 2007 was Baht 297 million, up Baht 5 million or 1.7% over the same period of year.
From January 1, 2007 onwards, the Company has changed its accounting policy for recording investments in subsidiary and associated companies from the equity method to the cost method to comply with the notification from the Federation of Accounting Professions. In this regards, the Company has restated the previous period separate financial statements as though the investments in the subsidiary companies had originally been recorded using the cost method. Such change in accounting policy affects only the accounts related to investments in subsidiary companies in the Company separate financial statements, with no effect to the consolidated financial statements.
Yours very truly,
Miss Rumpa Kumhomreun
CFO, VP of Accounting & Finance