Index Living Mall Public Company Limited (ILM), Thailand’s leading integrated retailer of furniture and home furnishing products, announced its financial statement report for the first half of 2020.
Kridchanok Patamasatayasonthi, the managing director of ILM, disclosed that the company generated over 4 billion baht with a gross profit margin of 44.1 per cent.
ILM had a total revenue of 4,080 million baht in the first half of 2020, decreasing 23.6 per cent compared to the same period in 2019.
In the second quarter of 2020, the revenue stood at 1,853 million baht, dropping 23.6 per cent against the first half of 2019.
However, the company’s net profit amount has decreased sharply due to store closures as a result of two months of lockdown measures.
The economic slowdown caused a decline in ILM’s net profit in the second quarter of 2020 to only 14.5 million baht, which was a 90.8 per cent decrease from 158 million baht in the second quarter of 2019.
The net profit in the first half of the year, however, stood at 132.7 million baht, dropping 54.2 per cent from 289.8 million baht in the first half of 2019.
ILM expects to see recovery by the end of 2020 as economic activities are resuming. The company will continue focusing on costs controlling and inventory reduction to enhance its profitability.
“Although many parties believe that the Thai economy will recover in the second half of the year following the gradual improvement of economic activities, the negative risk factors are still highly uncertain,” said Kridchanok.
As the morning session closed on Friday, ILM’s shares prices stood at 13.10 baht per share, -0.10 baht or 0.76 per cent from its prior price, with a high of 13.40 baht and low of 12.70 baht.
HMPRO
Despite a heavy fall in ILM’s net profit in the second quarter, Home Product Center PCL (HMPRO) also announced its decline with a net profit of 943 million baht, dropping 38.25 per cent compared to 2Q19.
The total revenues in the second quarter of 2020 were over 14 billion baht, a decrease of 3,176 million baht or down by 18.08 per cent.
HMPRO also lost its revenues from contracts with customers, as well as the EXPO event cancellations due to the store closures, both in Thailand and Malaysia.
Wannee Juntamongkol, the HMPRO senior vice president, revealed that even though online sales surged significantly in the second quarter, it could not compensate for the loss of sales resulting from the store closures.
However, analysts from Financia Cyrus Securities recommend buying HMPRO shares at the target price of 16.50 baht since the company has already passed the lowest point.
HMPRO shares moved down on Friday after the morning session by 1.86 per cent or 0.30 baht to stay at 15.80 baht per share, with the opening price at 16.00 baht.
