Reporting on Big C Financial Results for the year end 2007
28th February 2008
To: The Director and Commissioner of the SET Ref: Reporting on Company's Financial Results for the year end 2007.
Big C Supercenter PCL is pleased to report the results of its company and subsidiaries that have been examined by Ernst & Young auditors as of 31st December, 2007, as follows:
The operating results of the Company and its subsidiaries for the year ended 2007 reflected a net profit of Baht 2,502.4 million, compared to a net profit last year of Baht 2,123.6 million, which represents an increase of Baht 378.8 million, or 17.8 %. This good result from performance improvement of this year's operation is due to the following reasons:
1. Net sales during the year ending 2007 amounted to Baht 61,600 million for the company and its subsidiaries, which represents an increase of Baht 3,567.2 million, or 6.1%, over last year's operational figures. The significant increase in sales was supported by the Company's continuous expansion with five new stores opening in Lamphoon, Samui, Chonburi, Buriram and Hangdong during 2007.
2. Rental and Service Income from tenants was Baht 2,727.2 million in 2007 which was an increase of Baht 300 million or 12.3% over last year due to our continuous expansion as mentioned earlier in no. 1.
3. Other Income including income from suppliers' subsidies of in-store promotions and manufacturer promotions, income from logistics optimization and others in the year 2007 was Baht 6,573 million, which represented Baht 1,333 million, or a 25.4%.
4. A gross Profit of Baht 5,163 million in 2007 represented a decrease of Baht 263.7 million or 4.8% over last year due to our strong sale promotion campaigns have been launched to maintain our market shares during the period of uncertain economic conditions in year 2007. However, the overall profitability of the Company is still impressive and in line with our expectation.
5. Selling and Administration Expenses of Baht 10,743.5 million in 2007 represented an increase of Baht 859.2 million or 8.7 % over last year's figures. This resulted from the new store expansion and an increase in advertising expense that was necessary to increase sales.
6. Interest expenses for the year 2007 was Baht 84.6 million which represented an increase of Baht 5.3 million or 6.7% over last year.
7. Corporate income tax for the year 2007 was Baht 1,104.6 million, up Baht 112.6 million or 11.3% over last year as a result of higher net profit for 2007.
In 2007, the Company changed its accounting policy for recording investments in subsidiarycompanies in the separate financial statements from the equity method to the cost method, incompliance with Accounting Standard No. 44 (Revised 2007) regarding Consolidated Financial Statements and Separate Financial Statements. In this regard, the Company has restated the previous year 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 Bernard Braibant
CEO & President
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