GGC’s 2Q Profit Declines 99% after Booking Extraordinary Item from Returning Inventory

Global Green Chemicals Public Company (GGC) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

In 2Q/2019, total revenue was reported at THB 3,290 million, decreased from 2Q/2018 by THB 946 million or 22% and EBITDA was recorded at THB 88 million, a decrease of THB 49 million or 36% from the same quarter of the previous year.
This primarily impacted from declining of glycerine price driven by rising of global glycerine supply since biodiesel blending rate has been increased by the majority biodiesel producers in global, resulted in increasing of glycerine volume (a by-product of methyl ester), and together with B100 profitability pressured by high competition and low crude palm oil price. As a result, the company posted a net loss of THB 36 million, declining by 154% from 2Q/2018. However, GGC had an extraordinary item from returning inventory from the supplier of THB 14 million.
Thus, GGC posted a net loss including extraordinary itemTHB 22 million. While in 2Q/2018, the company had a net loss including an extraordinary item from inventory derogation incident THB 1,853 million, therefore, the net loss was decreased by 99%.