Miss Kridchanok Patamasatayasonthi, Managing Director of Index Living Mall Public Company Limited (ILM), Thailand's leading integrated retailer of furniture and home furnishing products, revealed that despite the newly emerging COVID-19 in many areas across the country triggering government agencies to impose stringent control measures in several provinces to prevent the spread of COVID-19. Although the Company's total revenue squeezed to 2,128 million baht consequently to the latest COVID-19 situation, net profit managed to grow to 143 million baht, an increase of 1.7% compared to the same period of the previous year. And for the year 2020, the Company recorded total revenue of 8,198 million baht and net profit of 421 million baht.
In Q4/2020, the Company recorded gross profit margin of 45.4%, an increase from 41.4% compared to the same period of the previous year. The higher gross profit margin was mainly driven by improved production efficiency as well as effective sales campaigns. Net profit margin climbed to 6.7%, an increase from 5.4% compared to the same period of the previous year after the Company continued to effectively control expenses in every aspect.
Miss Kridchanok further clarified that despite difficult situations, the Company has been able to manage liquidity satisfactorily. From the beginning of the year, the Company has repaid long-term loans to financial institutions totaling 1,502 million baht, including the prepayment of 1,156 million baht. The Company also has been paying dividends to shareholders regularly since listing in the Stock Exchange of Thailand on 26 July 2019. Lately, the Company has just announced the dividend payment of 0.42 baht per share for the operating results of the year 2020, which will propose to the shareholders' meeting for approval on 23 April 2021. As the Company has paid an interim dividend of 0.15 baht per share, the remaining 0.27 baht per share will be paid to shareholders upon the shareholders' meeting approval.
As for the year 2021, the Company believes that after people gradually get COVID-19 vaccines, the government will begin to open the country to foreigners, and this will help support the tourism industry to recover. Consumer confidence and purchasing power will start to improve. The domestic economy will be able to recover continuously accordingly. The Company's store sales then should be growing, while online sales will continue to be one of the main factors to drive sales growth. OEM will be another promising sales channel continuing to grow outstandingly this year, as the Company has been receiving more purchasing orders buoyed by the trade war between the U.S. and China. Additionally, the Company is determined to sustain the gross profit margin at a high level, control expenses effectively in every aspect as well as continuing to maintain inventories at an optimal low level. Thus, the Company should be able to make its operating performance back to a close level as 2019, which was before the COVID-19 situation, concluded Miss Kridchanok.
Source: MT Multimedia