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 three months ended 31 March 2018 as follows:

Key highlights in 1Q18

  • Net profit increased YoY - In 1Q18, net profit amounted to Baht 762 million increased by 7.3% mainly from higher sales, better gross profit margin and continue growth of rental income.

Comparison consolidated financial statement for 3 months ended 31 Mar 2018 and 31 Mar 2017

Unit : Million Baht
Consolidated financial statement
1Q18
1Q17
Increase
(Decrease)
% Change
Revenue from sales of goods 6,512 6,271 241 3.8%
Investment income 893 799 94 11.7%
Other income 236 214 22 10.4%
Total income 7,641 7,283 357 4.9%
Cost of sales of goods 4,850 4,687 163 3.5%
Selling expenses 1,587 1,485 102 6.8%
Administrative expenses 359 337 22 6.6%
Finance costs 12 20 (8) (39.8%)
Total expenses 6,808 6,529 279 4.3%
Share of profit of associates 131 147 (16) (11.0%)
Profit before income tax expense 964 902 62 6.9%
Income tax expense 155 147 8 5.7%
Net profit 762 710 52 7.3%

Financial performance in 1Q18

  • Total sales of goods : In 1Q18, total sales was Baht 6,512 million, increased by Baht 241 million or 3.8% from 1Q17, mainly from moderate improvement of customers spending and 3 new stores which opened last year, despite closure of Ubonratchathani 1 branch in February last year.
  • Investment income : In 1Q18, the total investment income was Baht 893 million, increased by Baht 94 million or 11.7% from 1Q17. The solid growth in total investment income was from good rental income growth of existing lifestyle centers including those resumed full operations after renovation and also 2 new lifestyle centers which opened last year. The average occupancy rate maintained at 99%.
  • Total income : In 1Q18, the total income was Baht 7,641 million, increased by Baht 357 million or 4.9% from 1Q17, mainly from sales and rental income growth.
  • Gross profit : In 1Q18, gross profits from sales amounted to Baht 1,662 million, increased by Baht 78 million or 4.9%. While gross profit margin increased to 25.5% from 25.3% in 1Q17 mainly from higher sales mix of higher margin product categories.
  • Selling and Administrative expense (SG&A) : In 1Q18, selling and administrative expenses amounted to Baht 1,946 million, increased by Baht 124 million or 6.8% from 1Q17 resulting from 3 new stores.
  • Financial costs : In 1Q18, finance costs amounted to Baht 12 million, decreased by Baht 8 million or 39.8% from 1Q17 resulting from loans repayment.
  • Shares of profit of associates : In 1Q18, Shares of profit from associates was Baht 131 million, decreased by Baht 16 million or 11.0% from 1Q17 (which derived from shared profit from Power Buy Baht 37 million and Super Sports Baht 94 million).
  • Income tax expense : In 1Q18, income tax expense amounted to Baht 155 million, increase by Baht 8 million baht or 5.7% from 1Q17.
  • Net profit : In 1Q18, net profit amounted to Baht 762 million, increased by Baht 52 million or 7.3% mainly from higher sales, better gross profit margin and continue growth of rental income.

Comparison financial position for full year ended 31 Mar 2018 and 31 Dec 2017

Unit : Million Baht
Financial position 1Q18 2017 Increase
(Decrease)
% Change
Cash and cash equivalents 1,627 1,805 (178) (9.8%)
Current investments 3 4 (1) (15.2%)
Other current assets 3,265 3,574 (310) (8.7%)
Other non-current assets 22,177 22,171 6 0.0%
Total assets 27,072 27,554 (482) (1.7%)
Total current liabilities 8,424 9,644 (1,220) (12.7%)
Total non-current liabilities 323 388 (64) (16.6%)
Total liabilities 8,747 10,032 (1,285) (12.8%)
Total equity 18,325 17,522 803 4.6%
Total liabilities and equity 27,072 27,554 (482) (1.7%)

As of 31 March 2018, total assets amounted to Baht 27,072 million, decreased by Baht 482 million or 1.7% compared to the end of 2017, mainly from decreased in cash resulting from trade payable and other payable settlements and loans repayment. Total liabilities amounted to Baht 8,747 million, decreased by Baht 1,285 million or 12.8% compared to the end of 2017 mainly from payments of trade and other payable and loans repayment. Total equity totaled Baht 18,325 million, increased by Baht 803 million or 4.6%.

Capital Structure

As of 31 March 2018, total interest bearing debt was Baht 1,703 million. Total interest bearing debt to equity ratio was at 0.1 times.