Translation

Date:

November 10, 2020

Subject: Reporting on the Company's financial performance for the third quarter of 2020

To:

President of the Stock Exchange of Thailand

Siam Makro Public Company Limited ("the Company" or "Makro") would like to announce the financial performance of the Company and its subsidiaries for the third quarter ended September 30, 2020, which has been reviewed by its Certified Public Accountant as follows:

Summary of consolidated financial results for the third quarter of 2020

3Q20

2Q20

3Q19

QoQ

YoY

Change

change

Number of Makro Stores

Thailand

(stores)

137

136

132

1

5

Overseas (1)

(stores)

8

8

7

-

1

Total (1)

(stores)

145

144

139

1

6

Consolidated Financial Performance

Total sales

52,925

50,290

49,856

5.2%

6.2%

Total revenues

(million Baht)

54,075

51,230

50,986

5.6%

6.1%

Gross profit

(million Baht)

5,644

4,840

5,280

16.6%

6.9%

Gross profit margin

(%)

10.7%

9.6%

10.6%

EBITDA (2)

(million Baht)

3,071

2,519

2,676

21.8%

14.8%

Net profit

(million Baht)

1,572

1,179

1,483

33.3%

6.1%

Earnings per share

(Baht)

0.33

0.25

0.31

33.3%

6.1%

Remarks:

  1. Includes a restaurant/food shop under Food Service APME.
  2. Earnings before interest, tax, depreciation and amortization, factoring in impact from adaptation of TFRS16 - Leases from January 1, 2020.

1 of 4

Total Revenues

In 3Q20, the Company registered consolidated total sales of Baht 52,925 million, an increase of 6.2% YoY, driven by the 6 new stores opened during the past 12 months and a decent growth of Makro Thailand owing to its continuous store format development, service enhancement with the O2O platform and e-payment, and a dedication in tailoring products to specific needs of target customers.

Makro International recorded a significant YoY growth in sales. This was attributed to sales leaps of LOTS in India and Makro Cambodia, in addition to additional contributions from a newly opened Makro store in Myanmar (commenced its operation in April 2020). Contrarily, the COVID-19 pandemic and the subsequent tourism disruption have taken a toll on Food Service APME. Though sales bottomed-out in the previous quarter, YoY comparison showed a significant contraction driven by persistent large-scale shutdowns of airlines, hotels, and restaurants, which were core customers of Food Service APME.

When aggregating revenue from rendering of services and other income of totaling Baht 1,150 million, the Company posted total revenues of Baht 54,075 million, rose by Baht 3,089 million or 6.1% from the same period of last year.

Distribution Costs and Administrative Expenses

In 3Q20, the Company and its subsidiaries incurred Baht 4,617 million of distribution costs and administrative expenses, or equivalent to 8.5% of total revenues, increased by Baht 187 million or 4.2% YoY. The surge was mainly from an increase of Baht 179 million, or 15.0% YoY in administrative expenses, largely due to the following distinct sources: a) growing employee benefits, b) consulting fees and expenses in relation to new businesses to cope with the changing customer behavior, and c) extraordinary expenses for business continuity management to ensure that business operation remains effective and Makro staffs, customers, business premises as well as goods and products are safe from the COVID-19.

Net Profits

In 3Q20, the Company reported its consolidated net profit of Baht 1,572 million, grew by 6.1% YoY, owing to a decent growth of Makro Thailand and an improvement of Makro International.

2 of 4

Summary of consolidated financial results for the first nine months of 2020

9M20

9M19

YoY change

Number of Makro Stores

Thailand

(stores)

137

132

5

Overseas (1)

(stores)

8

7

1

Total (1)

(stores)

145

139

6

Consolidated Financial Performance

Total sales

158,375

151,550

4.5%

Total revenues

(million Baht)

154,794

4.5%

161,686

Gross profit

(million Baht)

16,031

15,123

6.0%

Gross profit margin

(%)

10.1%

10.0%

EBITDA (2)

(million Baht)

8,752

7,529

16.2%

Net profit

(million Baht)

4,433

4,186

5.9%

Earnings per share

(Baht)

0.92

0.87

5.9%

Remarks:

  1. Includes a restaurant/food shop under Food Service APME.
  2. Earnings before interest, tax, depreciation and amortization, factoring in impact from adaptation of TFRS16 - Leases from January 1, 2020.

For the 9M20, the Company registered its consolidated total revenues of Baht 161,686 million, surged by 4.5 % YoY, and incurred Baht 155,598 million of distribution costs and administrative expenses, representing an increase of 4.2% from the same period of the preceding year. After deducting finance costs, income tax expense, and non-controlling interests, the Company recorded a consolidated net profit of Baht 4,433 million, or Baht 0.92 per share, increased by 5.9% compared to the same period of the previous year.

Please be informed accordingly.

Yours faithfully,

Siam Makro Public Company Limited

3 of 4

----------------------

(Saowaluck Thithapant)

Group Chief Shared Service Officer - Siam Makro

SET & Investor Relations

Tel. 02 067 8999 Ext. 8255/ 8261/ 8285 Fax. 02 067 9044

4 of 4

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Siam Makro pcl published this content on 10 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 10:14:01 UTC