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Financial Results for the third quarter of 2007

BackNov 14, 2007

13th November 2007

To: The Director and Commissioner of the Stock Exchange Of Thailand

Ref: Reporting on Company's Financial Results for the third quarter of 2007.

Dear Sir,

Big C Supercenter PCL is pleased to report the third quarter results of its company and subsidiaries that have been examined by Ernst & Young auditors as of 30th September, 2007 as follows:

The operating results of the Company and its subsidiaries for the third quarter of 2007 reflected a Net Profit of Baht 478.5 million as compared to a Net Profit of Baht 427.8 million over the same period last year representing an increase of 11.8 %. An increase in the net profit is based on the following reasons:

1. Net sales during the third quarter of 2007 amounted to Baht 15,113 million for the company and its subsidiaries, which represented an increase of Baht 789 million or 5.5% over the same period last year. The significant increase in sales was supported by the success of our expansion program. Since the beginning of 2007, four new stores have been opened which were Lampoon, Samui, Chonburi and Burrirum. Besides store expansion, a sale from existing stores was also a significant driving force for our continuous sale growth.

2. Rental and Service Income from tenants for the third quarter of 2007 was Baht 673 million which represented an increase of Baht 60 million or 9.8% over the same period last year due to new store expansion.

3. Other Income including income from suppliers' subsidies of in-store promotions, manufacturer promotions and others in the third quarter of 2007 was Baht 1,568 million, which represented an increase of Baht 374 million or 31.3% over the same period last year.

4. Gross Profit of Baht 1,227 million in the third quarter of 2007 represented a decrease of Baht 150 million or -10.9 % 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 Expenses of Baht 2,739 million in the third quarter of 2007 represented an increase of Baht 210 million or 8.3 % over the same period of last year which was caused by new store expansion and a strong promotion campaign to boost up sales.

6. Interest expenses for the third quarter of 2007 was Baht 21 million which represented a slightly decrease of Baht 0.5 million or -2.4% over the same period last year.

7. Corporate income tax for the third quarter of 2007 was Baht 213 million, up Baht 10 million over the same period of last year.

In 2007, the Company changed its accounting policy for recording investments in subsidiary companies in the separate financial statements from the equity method to the cost method, in compliance with Accounting Standard No. 44 (Revised 2007)regarding Consolidated Financial Statements and Separate Financial Statements.In this regard, the Company has restated the previous period's separate financial statements that has been brought for comparing to current year 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.

 

Yours very truly,

 

Mr. Yves Braibant
CEO & President

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