Financial Results for the second quarter of 2007
10th August 2007
To: The Director and Commissioner of the SET Ref: Reporting on Company's Financial Results for the Second Quarter of 2007
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 30th June, 2007 as follows:
The operating results of the Company and its subsidiaries for the second quarter of 2007 reflect a net profit of Baht 544 million as compared to a net profit of Baht 478 million over the same period last year. This second quarter performance is satisfactory, representing an increase of 13.8% over last year.
The increase in the net profit is based on the following reasons:
1. Net Sales during the second quarter of 2007 amounted to Baht 15,781 million for the company and its subsidiaries, which represented an increase of Baht 814 million or 5.4% over the same period last year. The increase in sales was supported by our expansion of new stores and sales from existing stores which were also a significant driving force for our continuous sale growth. In the second quarter, the company opened Lampoon store on May 2, 2007.
2. Rental and Service Income from tenants for the second quarter of 2007 was Baht 679 million which represented an increase of Baht 75 million or 12.4% 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 2007, was Baht 1,468 million, which represented an increase of Baht 213 million or 16.9% over the same period last year.
4. Gross Profit of Baht 1,343 million in the second quarter of 2007 represented a decrease of Baht 49 million or -3.5% over the same period last year due to our strong promotion campaign to maintain our market shares under uncertain economic conditions. However, overall profitability was in line with our expectation.
5. Selling and Administration Expense of Baht 2,675 million in the second quarter of 2007 represented an increase of Baht 131 million or 5.1% over the same period of last year which resulted from new store expansion and strong marketing program.
6. Interest Expense for the second quarter of 2007 was Baht 17 million which represented an increase of Baht 5 million or 41.6% over the same period last year.
7. Corporate Income Tax for the second quarter of 2007 was Baht 248 million, up Baht 37 million over the same period of last year.
8. Since January 1, 2007, 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's 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's separate financial statements, with no effect to the consolidated financial statements. From such change creates the net profit of the company in amount of 1,498 million Baht during January to June 2007. The company's net profit is higher than the consolidated net profit by 281 million Baht as a result of the dividend received from the subsidiaries during 6 months.
Yours very truly,
Mr. Yves Braibant
CEO & President
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