TKN’s 2Q Profit Falls 36% due to a Decrease of Sales Revenue in China and High Costs

Taokaenoi Food & Marketing Public Company Limited (TKN) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

TKN reported the net profit in the second quarter in the amount of THB 98.4 million or equal to 7.6% of the revenue from sales which decreased by 36.1% YoY. The ratio between net profit per the sales revenue is decreased by 4.4 % YoY (increased by 1.2 percent from Q1/2019), mainly due to decreased revenue from sales in China and such increased costs. TKN has the net profit for the first six months in a total of THB 179.7 million or equal to 7.0 percent of sales revenue decreased by 4.9 percent from the same period in the last year

Revenue from the International sales for the second quarter is THB 776.6 million increased by 3.3 % YoY. Sales in China, which remains the major export market, accounted for 36 percent of the total sales, but sales decreased by 8.8 % relative to that of the same period of the previous year as the new distributor was in the course of increasing the distribution of products to cover the relevant areas in place of sales from one of the previous distributors whose distribution agreement had been terminated last year, and started to improve as compared to the first quarter. In addition, the Company’s sales continued to increase in several countries, e.g., the United States of America, Indonesia, and CLMV ( Cambodia/ Laos / Myanmar/ Vietnam), etc.