PACE Reports a ฿2.4Bn of Net Loss in 2019 as Revenue Drops by 75%

Pace Development Corporation Public Company Limited (PACE) has reported its 2019 consolidated financial statement through the Stock Exchange of Thailand as follows;

In the year 2019, PACE recorded a total loss of Baht 2,421 million, improved from 2018 that recorded a total loss of Baht 5,156 million. This is a result of the disposition of assets and investments in a total of Baht 3,533 million.

 

PACE recorded total revenue of Baht 2,224 million in 2019, decreased from 2018 by Baht 6,589 million or by 75%. Revenue from the property development business of Baht 469.2 million decreased from 2018 by Baht 5,646 million or 92%.

The company had recorded the revenue from sales of the MahaNakhon- The Ritz Carlton residences Bangkok while in 2019 PACE is in the completion process of other property development projects namely Nimit Langsuan and MahaSamutr Country Club. This results in a significant decline in revenue.

 

Revenue from gourmet food and beverages of Baht 1,194 million, decreased from 2018 by Baht 1,240 million or by 51%. This was due to closure of all six DEAN & DELUCA stores in the United States and two stores in Thailand.

 

Revenue from trademark and trade name fees of DEAN & DELUCA, interior service income and other income of Baht 561 million, increased from 2018 by Baht 356 million or 63%. This was due to gain on disposal of investment in subsidiary, operating gain of subsidiary disposed during the year, gain on disposal of investment in joint venture and gain on debt deduction of DEAN & DELUCA, Inc.

 

PACE recorded selling expense and administrative expense (SG&A) of Baht 2,603 million comprises of selling expense of Baht 1,070 million and administration expense of Baht 1,533 million. The decline in SG&A of Baht 1,039 million or by 29% year-on-year results from the effective ‘rightsize’ strategy of the Company that initiated during the previous quarters. However, SG&A to sales at 152%, increased from the previous year at 42%, reflecting the decline in revenue from both businesses in a greater portion in comparison to the decline in expenses.

The company recorded a loss on impairment of Baht 290 million which consists of advance payment for purchase of land Baht 100 million and leasehold improvement, equipment and computer software Baht 181 million.