HMPRO Reports a 38% Decline in 2Q, Affirming of Strong Liquidity amid Coronavirus Crisis

Home Product Center Public Company Limited (HMPRO) has reported its consolidated financial statement for 2Q20 through the Stock Exchange of Thailand as follows;

HMPRO’s net profit for the second quarter of 2020 was Baht 942.68 million, representing a decrease of Baht 583.95 million or down by 38.25% over the same period last year.

Sales have been severely impacted by the government’s order closing business venues during this quarter, despite having seen a substantial growth in online sales. Revenue from contracts with customers which comprised product sales revenue and service income (Home Service) was Baht 13,824.17 million, representing a decrease of Baht 2,721.14 million or down by 16.45% due to the temporary closure of stores in both Thailand and Malaysia.

Furthermore, rental income has been impacted negatively as HMPRO exempted rental fees to tenants affected by the closures imposed by the government; although tenants’ business operations have now resumed, rental income is still affected by low-traffic from customers.

 

HMPRO has been able to maintain financial liquidity, so there is no significant impact of COVID-19 on debt obligations. Meanwhile, the company has taken stringent measures to manage and control its costs in order to maintain liquidity and financial flexibility. HMPRO remains cautious on investment, while seeking various sources of working capital, along with effective control and management of inventory.

Selling and administrative expenses (SG&A) amounted to Baht 2,461.78 million, a decrease of Baht 539.46 million or down by 17.97% as compared with the same period last year. The SG&A as a percentage of sales was reduced from 18.14% in the previous year to 17.81%. This resulted from the lower both in variable and fixed expense.

 

Regarding branch expansion in the second quarter, HMPRO did not open any new stores. As of the second quarter of 2020, the company has 84 HomePro stores, 9 HomePro S stores, 14 Mega Home stores, and 6 HomePro stores in Malaysia.