Shop Closures from COVID-19 Cause BEAUTY to Book a Net Loss in 1Q20

Beauty Community Public Company Limited (BEAUTY) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

BEAUTY reported a net loss of 39 million baht in 1Q20, contrasted to its net profit of 69 million baht in 1Q19. The decrease was due to a decline in sales in the retail store sector caused by temporary closing shops under government’s policy to contain the spreading of coronavirus.

Total revenues for the first quarter of 2020 were THB 270.32 million, decreased by 50.74% from the same period of 2019. Revenue structure came mainly from the retail channels “Cosmetic Shops” including Beauty Buffet shops were 48.33% and Beauty Cottage shops were 10.06%. Meanwhile, the same store sales growth (SSSG) at the end of 1st Quarter 2020 declined by 42.87%.

Selling expenses for the first quarter of 2020 were THB 124.82 million, which decreased by 31.38% YoY. The decrease in selling expenses was mainly due to the adjustment of the company’s cost control on every operational process.

Administrative expenses in 1Q20 were THB 62.76 million, decreased by 5.37% YoY. The decrease mainly came from the company continuing to remain prudent in cost control by managing all expenses effectively according to the company cost saving program since September 2019.