MD & A

Archive : Management's Discussion and Analysis.

Robinson Public Company Limited would like to clarify the operating results of the Company and its subsidiaries for a period of three months and six months ended 30 June 2018 as follows:

Key highlights in 2Q18

  • Net profit increased YoY - In 2Q18, net profit amounted to Baht 694 million, increased by 15.6% mainly driven by higher sales, rental income growth, and higher contribution of share of profit from associates.
  • New store in Chonburi - The Company opened a new lifestyle center in Chonburi province in 2Q18. Currently, the Company operates 47 branches in Thailand (11 branches in Bangkok Metropolitan and 36 branches in up-country) and 2 branches in Vietnam.

Summary of consolidated statement of comprehensive income for the 3-month period ended 30 June 2018 and 30 June 2017

Unit : Million Baht
Consolidated financial statement
2Q18
2Q17
Increase
(Decrease)
% Change
Revenue from sales of goods 6,192 6,021 171 2.8%
Investment income 903 815 88 10.8%
Other income 243 241 2 0.9%
Total income 7,338 7,077 261 3.7%
Cost of sales of goods 4,659 4,532 127 2.8%
Selling expenses 1,597 1,574 24 1.5%
Administrative expenses 376 345 31 9.0%
Finance costs 12 16 (4) (25.6%)
Total expenses 6,644 6,467 177 2.7%
Share of profit of associates 157 129 28 21.7%
Profit before income tax expense 851 739 112 15.1%
Income tax expense 118 109 10 9.1%
Net profit 694 601 94 15.6%

Financial performance in 2Q18

  • Revenue from sales of goods : increased by Baht 171 million or 2.8% from 2Q17 to Baht 6,192 million in 2Q18, mainly from contribution of new stores which opened last year and this quarter, as well as the promotional activities to stimulate customer spending such as Greatest Grand Sales in June.
  • Investment income : was reported at Baht 903 million, increased by Baht 88 million or 10.8% from 2Q17. The solid growth was driven by good rental income growth of existing lifestyle centers and 3 new lifestyle centers which opened last year. The average occupancy rate maintained at 99%.
  • Total income : was Baht 7,338 million, increased by Baht 261 million or 3.7% from 2Q17, mainly from sales and rental income growth.
  • Gross profit : increased by Baht 43 million or 2.9% from 2Q17 to Baht 1,533 million in 2Q18. The gross profit margin slightly increased to 24.8% from 24.7% in 2Q17
  • Selling and Administrative expenses : amounted to Baht 1,973 million, increased by Baht 54 million or 2.8% from 2Q17, mainly from new stores which opened last year and this year.
  • Financial costs : decreased by Baht 4 million or 25.6% from 2Q17 to Baht 12 million in 2Q18, resulting from loans repayment
  • Shares of profit of associates : was Baht 157 million, increased by Baht 28 million or 21.7% from 2Q17, resulting from higher profit of CRC Sports Co., Ltd.
  • Income tax expense : amounted to Baht 118 million, increased by Baht 10 million or 9.1% from 2Q17.
  • Net profit : was reported at Baht 694 million, increased by Baht 94 million or 15.6% from 2Q17, mainly from higher sales, rental income growth, and higher share of profit from associates.

Summary of consolidated statement of comprehensive income for the 6-month period ended 30 June 2018 and 30 June 2017

Unit: Million Baht
Consolidated financial statement
1H18
1H17
Increase
(Decrease)
% Change
Revenue from sales of goods 12,703 12,292 412 3.4%
Investment income 1,796 1,614 182 11.3%
Other income 479 455 25 5.4%
Total income 14,979 14,360 618 4.3%
Cost of sales of goods 9,509 9,218 290 3.2%
Selling expenses 3,184 3,059 125 4.1%
Administrative expenses 735 682 53 7.8%
Finance costs 24 36 (12) (33.4%)
Total expenses 13,452 12,995 457 3.5%
Share of profit of associates 288 277 12 4.3%
Profit before income tax expense 1,815 1,641 174 10.6%
Income tax expense 273 255 18 7.1%
Net profit 1,456 1,310 146 11.1%

Financial performance in 1H18

In 1H18, total income was Baht 14,979 million, increased by 4.3% from 1H17, mainly from higher sales and rental income growth. Gross profit was reported at Baht 3,195 million, increased by Baht 121 million or 4.0% from 1H17, and gross profit margin reported at 25.1% compared to 25.0% in 1H17. Selling and administrative expenses totaled Baht 3,919 million, increased by 4.8% from 1H17, mainly from new stores which opened last year and this year. Finance costs amounted to Baht 24 million, decreased by 33.4% from 1H17 resulting from loans repayment. Net profit was Baht 1,456 million, increased by 11.1% from 1H17 from higher sales, rental income growth, and higher contribution of share of profit from associates.

Summary of statement of financial position as of 30 June 2018 and 31 December 2017

Unit: Million Baht
Financial position
30 Jun 18
31 Dec 17
Increase
(Decrease)
% Change
Cash and cash equivalents 1,068 1,805 (737) (40.8%)
Trade accounts receivable 691 997 (306) (30.7%)
Inventories 1,888 2,028 (140) (6.9%)
Other current assets 527 553 (27) (4.8%)
Fixed assets1 18,101 18,133 (32) (0.2%)
Other non-current assets 4,377 4,037 340 8.4%
Total assets 26,652 27,554 (902) (3.3%)
Trade accounts payable 4,000 4,858 (858) (17.7%)
Short-term loans & current portion of long-term loans 1,761 1,561 199 12.8%
Other current liabilities 3,046 3,224 (179) (5.5%)
Long-term loans 134 207 (72) (35.0%)
Other non-current liabilities 182 181 1 0.4%
Total liabilities 9,122 10,032 (909) (9.1%)
Total equity 17,530 17,522 8 0.05%
Total liabilities and equity 26,652 27,554 (902) (3.3%)

Note: 1Fixed assets include investment properties, property, plant and equipment, and leasehold rights


As of 30 June 2018, total assets amounted to Baht 26,652 million, decreased by Baht 902 million or 3.3% from the end of 2017, mainly from decrease in cash resulting from trade payable, other payable settlements, and long-term loans repayment. Total liabilities amounted to Baht 9,122 million, decreased by Baht 909 million or 9.1% from the end of 2017, mainly from payments of trade and other payable and repayment of long-term loans. Total equity was Baht 17,530 million, increased by Baht 8 million or 0.05%.

Capital Structure

As of 30 June 2018, the Company's capital structure comprised of total liabilities of Baht 9,122 million, which included interest-bearing debt Baht 1,895 million, and total shareholders' equity totaled Baht 17,530 million. Total liabilities to equity ratio of 0.5 times, while net interest-bearing debt to equity ratio was at 0.1 times.