HMPRO Reports Earnings of ฿870Mn in 3Q, Down 38% from Stores Closure

Home Product Center Public Company Limited (HMPRO) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

HMPRO’s net profit for the third quarter of year 2021 was Baht 870.41 million representing a decrease of Baht 530.10 million or down by 37.85% over the same period last year. The main reasons include; 1) total revenues were Baht 13,776.84 million, a decrease of Baht 2,240.83 million or down by 13.99%, as revenue from contracts with customers which comprised of product sales revenue and service income (Home Service) decreased as overall domestic sales was affected by the temporary stores closure and lower consumer purchasing power along with declining of economic situation, albeit in September 2021, the government has relaxed the lockdown measure but the consumer purchasing power has not fully recovered yet.

2) Gross profit from product sales and service income (Home Service) was Baht 3,318.53 million, a decrease of Baht 566.61 million or down by 14.58%. 3) Cost of rental and related services was Baht 144.26 million, an increase of Baht 8.46 million or up by 6.23% due to additional cost related to the increase in rental area of Rangsit Klong 4 branch that HMPRO has opened in the fourth quarter of 2020.

Meanwhile, selling and administrative expenses (SG&A) amounted to Baht 2,591.98 million,  a decrease of Baht 300.89 million or down by 10.40% due to the lower of expenses that has resulted from the temporary stores closure both domestically and internationally such as salary and welfare along with rental and expenses related to the building and utilities. Nevertheless, the overall SG&A as a percentage of sales increased from 19.20% in the previous year to 19.68%.

For the nine-month period of year 2021, HMPRO recorded a net profit of Baht 3,665.47 million representing an increase of Baht 55.76 million or up by 1.54% over the same period last year. The main reason was total revenues were Baht 46,563.69 million, an increase of  Baht 839.25 million or up by 1.84%.