INDEX LIVING MALL, THAILAND’S NO.1 HOME FURNISHINGS AND DECORATIVE RETAIL CHAIN STORE

ILM reported strong Q3/2020 results, a net profit grew 9 times compared to the previous quarter, reaching 145.6 million baht, with operating revenue of almost 2 billion baht, a significant recovery following sales and rental revenue growth, after the reopening of all stores for a full quarter. Profit margins hit a record high after the successful implementation of controlling costs – adjusting sales strategies - increasing production efficiency. Liquidity has been strong, with a dividend payment and long-term loan pre-repayment of approximately a billion baht since the beginning of the year. The executive expects that the performance at the end of the year should boost up from the government’s economic stimulus measure “Shop Dee Mee Kuen” which will help stimulate domestic purchasing power.

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 the overall performance of Q3/2020 was significantly recovered and bottomed out from Q2/2020, in which the government imposed the lockdown measure to prevent the spread of COVID-19. The Company posted a net profit of 145.6 MB, an increase of more than 9 times compared to the previous quarter, following total revenue of 1,989.8 million baht, an increase of 7.4% compared to the previous quarter, supported by improved domestic purchasing power. As a result, in 9M/2020, the Company had total revenue of 6,069.4 MB and a net profit of 278.2 MB.

In Q3/2020, the Company hit the all-time gross profit margin and net profit margin. The gross profit margin from sales stood at 49.9% supported by production efficiency enhancement, product mix adjustment to increase sales proportion of high-profit margin products responding to today's New Normal consumer lifestyle as well as managing sales campaigns efficiently. The net profit margin also reached an all-time high level at 7.3%, after the Company has been continuously controlling selling, general and administrative expenses (SG&A) effectively.

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 1,367 MB, which included the pre-repayment of 998 MB. The Company has also paid a dividend totaling 232.3 MB for the 2019 operating performance, plus an announcement to pay an interim dividend totaling 75.MB for the operating performance period during 1 January - 30 June 2020, which was already paid out to shareholders on 8 October 2020.

At the end of the year 2020, the Company expects that the government’s economic stimulus measure “Shop Dee Mee Kuen” will help stimulate domestic purchasing power as well as driving the Company’s sales and operating results to recuperate continuously. The Company is determined to maintain the gross profit margin at a high level, control SG&A efficiently as well as enhancing supply chain management to continue reducing inventories in the future. Thus, the Company will be able to sustain its high profitability and have outstanding growth in operating performance when the economy returns to the pre-COVID-19 pandemic situation level, concluded Miss Kridchanok.

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