SUBMISSION OF F/S AND EXPLANATION FOR PROFIT CHANGE
07 February 2001
(Translation)
7 February 2001
Subject:Submission of Financial Statement for the Year Ended
31 December 2000
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 31 December 2000 which have been audited by the
Company's auditor. In the year 2000, the company's consolidated
financial statements showed the net profit after tax of Baht
1,027.5 million, an increase of 80% over the year 1999 in which
the net profit of Baht 571 million has been reported. Main reasons
for substantial increase in profit can be summarised as follows:
1. In the year 2000, the Company has opened 2 new stores
which are the Narathiwasratchanakharin Branch in March and Nakhon
Pathom Branch in October. This has resulted in an increase in total
sales in addition to the budgeted increase in same stores sales.
The consolidated sales revenue increased 9.6% from the year before.
2. An increase in gross margin was resulted from the
change in sales mix of food and non-food whereas in 2000 the
non-food business grew at a higher rate than food. An improvement
in stock control has also resulted in lessor requirement of stock
provision for lost and damaged stocks.
3. Other income increased 23% from the prior year in spite
of a sharp drop in interest income which was in line with the
reduction in interest rates.
4. Effective control over selling and administrative
expenses at the level of 7.7% of total revenues which is in line
with that of 1999.
In the second quarter of 1999, a subsidiary has recognised
a provision for impairment of a plot of land held for sale or
further development amounted to Baht 164.9 million. The loss was
fully recorded without tax benefit. When compared to profit before
impairment loss as discussed above, the increase in net profit for
the year 2000 was 40% over the year before.
Please be informed accordingly.
Yours sincerely,
- signed -
Suchada Ithijarukul
Director