-Translation-
LOXLEY/CS/014/2023
10 November, 2023
Subject: Clarification of the changing of Net Profit in Consolidated Financial Statement exceeding 20% compared to the same period of the previous year of Loxley Public Company Limited for Q3/2023 ended 30 September, 2023
To: President
The Stock Exchange of Thailand
Loxley Public Company Limited ("the Company") has submitted the consolidated financial statements for the quarter ended 30 September, 2023 which is summarized as follows:
Quarter 3 | Change | |||
THB:Million | 2023 | 2022 | MB | % |
Revenue from sale of goods and rendering of services | 2,883 | 3,167 | (284) | (9%) |
Cost of sale of goods and rendering of services | (2,480) | (2,779) | (299) | (11%) |
Gross profit | 403 | 388 | 15 | 4% |
Distribution costs and administrative expenses | (447) | (422) | 25 | 6% |
Other income and gain on fair value adjustment | 18 | 50 | (32) | (64%) |
Profit (loss) from operating activities | (26) | 16 | (42) | >(100%) |
Reverse impairment loss in accordance with TFRS9 | 37 | 4 | 33 | >100% |
Share of profit of associates and joint ventures, net | 89 | 12 | 77 | >100% |
Finance costs/Income tax/ NCI | (50) | (75) | 25 | 33% |
Net profit (loss) | 50 | (43) | 93 | >100% |
According to the table presented above, the operating result for the 3rd quarter ended 30 September, 2023, the Company had a revenue of 2,883 million Baht and a net profit of 50 million Baht, which is a change of more than 20% compared to the same period of the previous year. The Company would like to clarify the details for such change as follows:
Revenue from sale of goods and rendering of services
In the quarter ended 30 September, 2023, the total revenue from sale of goods and rendering of services was 2,883 million Baht, representing a decrease of 284 million baht or 9% compared to the same period
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of the previous year. This decline was mainly due to a reduction of 359 million Baht in soybean oil product sales in Trading business group which primarily influenced by intense competition and the availability of substitute products, particularly palm oil, which is priced lower. However, there were positive trends in other sectors; the Information Technology business group achieved a revenue of 875 million Baht, and the Service business group generated 368 million Baht in revenue. Both showed growth from the previous year, with increases of 31% and 13% respectively, mainly attributed to the successful implementation of self- service machine systems during this quarter.
Profit (loss) from operating activities
The Company incurred a loss from its operations for the quarter ended 30 September, 2023 amounted to 26 million Baht. This marks a decrease in profit from the same period of the previous year by an amount of 42 million Baht. This decline is primarily attributed to reduced income from other sources and the profit from the fair value adjustment of forward foreign exchange contracts due to the impact of the weakened Baht currency during the period, totaling 32 million Baht.
Share of profit of associates and joint ventures - net
Share of profit of associates and joint ventures for the quarter ended 30 September, 2023 amounted to 89 million Baht, an increase of 77 million Baht compared to the same period of the previous year. The significant upturn was mainly due to the performance of the steel-coating products business, which consistently improved in 2023, mainly due to the impact of decreasing raw material prices' volatility. This improvement led to more efficient cost management.
Net profit
The Company recorded a net profit of 50 million Baht which increased from a net loss 43 million Baht in the same period of the previous year. The aforementioned change was influenced by the detailed factor described above.
Please be informed accordingly.
Sincerely yours,
Loxley Public Company Limited
(Mrs. Manisara Janewithayapun)
Company Secretary
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