11 | Nov | 2015

KCE delivers record-high Q3/2015 operating results in sales, gross profit margin and operating profit

KCE Electronics PCL proudly announces that, during the third quarter of 2015, the company and its subsidiaries ('Group') produced a record-high performance in terms of sales, gross profit margin and operating profit. The Group generated Baht 3,301 million in sales; a gross profit margin of 32% of sales; Baht 602 million in operating profit; and, a consolidated net profit of Baht 573 million. The Group is also moving forward with its plan to increase its manufacturing capabilities with a new plant facility during the fourth quarter of 2015 in order to accommodate with constantly increasing market demands.

Mr. Bancha Ongkosit, Executive Chairman, KCE Electronics Public Co., Ltd. or KCE,

a leading manufacturer and exporter of the Printed Circuit Board (PCB) in South East Asia, revealed that, “Our consolidated sales revenue rose from Baht 3,047 million in Q2/2015 to a record sales of Baht 3,301 million for Q3/2015, represented a Q-o-Q growth of some 8%, and 10% Y-o-Y compared to sales during the same period in 2014. The increase was primarily a result of increased production volumes driven by additional capacity at new plant facility.”

“Moreover, for the first time, gross profit margin reached 32% of sales in Q3/2015, compared to 30.8% in Q2/2015. The improvement was to a large extent the result of higher economies of scale, following the increasingly use of production capacity at new plant. Additionally, improved efficiency in manufacturing cost control also contributed.”

Mr. Bancha further revealed, “Additionally, operating profit reached a new high of Baht 602 million, represented a further increase of approximately Baht 100 million, or 20%, compared to operating profit achieved during Q2/2015, and 28% compared to the same period last year. The increase in operating profit was the result of higher sales levels and lower cost of goods sold, partially offset by higher selling, general and administrative expenses and interest costs.”

“We also reported a consolidated net profit of Baht 573 million for Q3/2015, or

a 17% Q-o-Q increase, compared to Baht 490 million in Q2/2015, and a 6% Y-o-Y decrease over Baht 611.1 million achieved the year before, due to the insurance compensation was included in Q3/2014. After adjusting for insurance, net profit increased 18% Y-o-Y. This resulted in Baht 1.00 of basic earnings per share for the third quarter of 2015, and Baht 2.77 for the nine-month period in 2015.”, added Mr. Bancha.

During the nine months ended September 30, 2015, consolidated sales were Baht 9,230 million, a Baht 648 million, or approximately 8%, increase from sales during the same period in 2014. Meanwhile, operating income increased by Baht 235 million, or 18%, to Baht 1,561 million for the 9 months in 2015, compared to the same period in prior year. This development was primarily the contribution from business expansion in the new plant and partly, the effects of changing currency rates.

Mr. Bancha further noted that, “Furthermore, additional capacity will be added to the new manufacturing facility during the fourth quarter of 2015 in order to accommodate for constantly increasing market demands. Management also believes fiscal year 2015 performance will mark the beginning of the new cycle of business growth for KCE group.”