TOA’s 3Q Profit Drops Slightly as an Increasing Expenses Offset Gross Profit

TOA Paint (Thailand) Public Company Limited (TOA) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

TOA reported a net profit of 523 million baht in 3Q20, decreased 3.47% when compared to the same period of last year. The decrease was primarily attributable to the increased selling and administrative expenses partially offset by an increased gross profit.

The sales revenue was 4,021.5 million baht for the quarter, slightly decreased from 4,061.1 million baht in 3Q19. The decrease derived primarily from a decrease in decorative paint and coating products sales revenue due to a decreased sales volume partially offset by an increase in non-decorative paint and coating products sales revenue due to an increased sales volume.

Cost of sales decreased 119.8 million baht or 4.5% from 2,644.8 million baht in 3Q19. The decrease was primarily attributable to a decreased sales volume and average cost per unit of main raw materials used in our production process decreased. However, total selling expenses increased 68.1 million baht or 13.3% from THB512.4 million in 3Q19 to 580.5 million baht in 3Q20. This increase was primarily attributable to the increase in freight expenses and advertising expenses.