ILM’s 2020 Earnings Drops by 29% due to a Store Closure Nationwide during the Pandemic

Index Living Mall Public Company Limited (ILM) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

ILM’s net profit in 2020 was Baht 421.2 million, reduced by 29.3% YoY, mainly due to the decrease in operating revenue by 17.1% YoY, as a result of most store closure nationwide between 22 March and 16 May 2020 due to the first epidemic of COVID-19 in late Q1/2020 and some store closure due to the newly merging of COVID-19 inlate Q4/2020, as well as consumers’ cautious spending resulted from concerns about the economy and the COVID-19 pandemic situation. 

 

Although operating revenue decreased, gross profit margin managed to improve by 2.4% YoY and stood at 46.0%, while SG&A reduced. These have resulted from lower production costs, higher production efficiency, and reduced operating costs in every aspect continuously. Online sales grew remarkably by 153.7% YoY, OEM sales roseby 121.4% YoY, and domestic home project sales increased by 12.4%YoY. The company has been able to manage liquidity satisfactorily and repaid long-term loans totaling Baht 1,502.3 million from the beginning of the year 2020, including the prepayment of Baht 1,156.3 million. The Company’s adoption of TFRS 16 resulted in a lower net profit in 2020 by Baht 25.2 million from the recognition of higher depreciation and interest expenses.