SUBMISSION OF 1999 FINANCIAL STATEMENTS
17 February 2000
Translation
17 February 2000
Subject : Submission of 1999 Financial Statements
To : Director and Manager
The Stock Exchange of Thailand
Please find enclosed the consolidated financial statements
of Siam Makro Public Company Limited and its subsidiary companies for
the year ended December 31, 1999 which has been audited by the Company's
auditor. The Company's net profit for 1999 was 735.9 million baht which
was the profit before deducting a provision for impairment of a plot
of land held by a subsidiary and represented a 34.6% increase over the
restated profit in 1998. This was attributed to the increase in same
stores sales, new store opening, higher service and other income while
interest income was substantially lower as a result of continue declining
in interest rate. Moreover, the Company has successfully managed and
controlled the selling and administrative expenses down to 7.7% of
total revenue when compared to 8.1% in 1998.
The start of the overall economic recovery during the year,
the reduction in VAT from 10% to 7%, the successful 10th anniversary
promotion program and continuous expansion resulted in 12.1% increase
in 1999 consolidated sales over the year before.
In the second quarter of 1999, a subsidiary has recognised
a provision for impairment of a plot of land held for sale or future
development amounted to 164.9 million baht. The loss was fully recorded in
the profit and loss statement without tax benefit. In the third quarter,
the Company has changed its accounting policy from capitalisation of
deferred development rights and pre-opening and start up cost to
expense such cost as incurred.
After the above adjustments the Company's net profit was
571.1 million baht, 24 million baht higher than 1998.
Please be informed accordingly.
Yours faithfully,
Signature
Suchada Ithijarukul
Director