- H1 sales up 1.3 pct y-o-y to THB 95.18 bln
- H1 gross profit margin rose to 25.4%
Market for Alternative Investment (mai)-listed companies reported a 1.3 percent year-on-year increase in total sales to THB 95.18 billion (approx. USD 2.73 billion) for the first half of 2023, while cumulative operating profits dropped 14.1 percent to THB 5.55 billion due to a 14.5-percent increase in selling and administrative expenses.
mai President Prapan Charoenprawatt said that 200 mai-listed companies, accounting for 97 percent of the total 207 companies (excluding those in the non-compliance or NC list and those with different closing dates for accounting periods), submitted their operating results for the January-to-June period of 2023. A total of 135 companies, representing 68 percent of all companies that submitted financial statements, reported net profits.
For the first half of 2023, mai-listed companies managed to control costs as seen by a 0.3 percent decline in costs of goods sold that boosted gross profit margin (GPM) to 25.4 percent from 24.2 percent over the same period last year. However, selling and administrative expenses rose by 14.5 percent, resulting in a 14.1 percent year-on-year decline in operating profits to THB 5.55 billion. mai-listed companies' total net profits fell by 70.9 percent to THB 1.50 billion, largely due to the THB 1.99 billion-loss from extraordinary items and impairment recorded by a listed company. In the corresponding period last year, a listed company recorded a one-off profit amounting to THB 1.42 billion from the divestment of a power plant. If the one-time items had been excluded, net profits of mai-listed companies in the first half of 2023 would have declined by 26.7 percent.
For the second quarter of 2023, mai-listed companies' total sales fell by 2.0 percent to THB 47.03 billion and their cost of goods sold dropped by 2.9 percent to THB 35.17 billion. Their gross profit margin consequently rose to 25.2 percent from 24.5 percent. However, the selling and administrative expenses soared by 15.6 percent. As a result, their operating profits decreased by 35.1 percent from the same period of last year.
"In the first half of 2023, although most listed companies had higher sales, their selling and administrative expenses rose because economic activities returned to normal and personnel expenses increased from their wages and the number of workforces. Consequently, operating profits dropped. However, three industry groups comprising Agro & Food Industry, Technology and Financials industry groups delivered growth of their sales, operating profits and net profits," Prapan added.
In terms of financial position, mai-listed companies' total assets rose by 4.0 percent from the same period of last year to THB 325.29 billion and their debt-to-equity ratio (D/E ratio) lowered to 0.80 time from 0.82 time at the end of 2022.
Currently, there are 207 mai-listed companies. As of August 25, 2023, mai Index closed at 481.94 points, with the total market capitalization of THB 484.41 billion and average daily trading value of THB 2.60 billion.