KUMWEL Reports a 33% Increase in 2Q Profit as Cost of Goods and Services Drops

Kumwell Corporation Public Company Limited (KUMWEL) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

KUMWEL reported an increase of profit for 2Q20 by 33.30% YoY to record at 9.8 million baht, compared to a net profit of 7.3 million baht in the same period of last year. The decrease was mainly due to the lower cost of goods and services for the period.

 

Total sales were 92.23 million baht, 16.82% lower than the same quarter of last year. The lower sales were mainly due to the spread of the coronavirus 2019 (COVID-19) which led to a significant decrease in overseas sales following area closures of customers’ countries which caused delays in transportations and deliveries of products. Meanwhile, demand from domestic large scale infrastructure projects and buildings under construction was slightly lower.

The cost of goods and services in the second quarter of 2020 was 50.84 million baht, down 30.74% from 73.40 million baht of the same quarter of last year. Gross profit margin in the second quarter of 2020 was 44.88%, higher than 33.81% of the same quarter of last year. The increase in gross profit margin was mainly due to the company’s cost reduction process and a decrease in inventory impairment.