Company Presentation 2Q2020 Doh ohom ome e Public lic Com ompany any Limi mited ted
Table of Contents 1 Business Update during COVID-19 Situation 2 Dohome Business Overview 3 Operating Results for 2Q2020 4 Business Outlook 1
Business Update during COVID-19 Situation
Dohome’s Current Status and Corporate Strategy 22 March 2020 17 MAY 2020 According to the Government’s measures The government has allowed the to deal with COVID-19, we temporarily opening of all construction material closed 8 large branches and 6 Dohome To- stores on May 17, we have resumed Go opening additional 4 large branches and 6 Dohome To-Go Rangsit, Bang Bua Thong, Rama 2, Petchkasem, Korat, Udon, Khon Kaen, Rangsit, Bang Bua Thong, Khon Chiang Mai Branch, and 6 Dohome To-Go Kaen, Chiang Mai, and 6 Dohome To-Go 3 MAY 2020 The government has relaxed the control measures, we have resumed 1 1) Promoting and Pushing the existing service channels of online opening 4 large branches including (E-Commerce) and direct phone ordering to our sales team and sales representative. Rama 2, Petchkasem, Korat, Udon 2) 2 Adapting working processes to be in line with the situation; such as, transferring employees from other sales team to direct sales team (phone-call ordering), promoting the electronic payment, and allowing employees in some departments to work from home, etc. 3) 3 Considering more credit customers tightly to prevent incurring bad debts. 4 4) Preparing the strict public heath control to all employees, customers and partners as follows; - Set screening point and body temperature measurement before entering the offices or branches - Support campaign of often hand washing by sanitary gel - Wear the face masks during work at the office or branches - Keep social distancing 1 meter in all areas - Keep clean for the frequently exposed equipment and risk areas with antiseptic at least every hour, etc. 3
Prevention Measures at Store Mark the appropriate Require online register via Set screening point and body Measure daily body distance in waiting line QR code to check in temperature measurement for all temperature of all staffs customers at the entrance area before working Add service point for hand Employees must wear a Set the plastic barriers Clean the frequently exposed sanitizer and install the sign to face mask at all time between cashier equipment with antiseptic advise the operation 4
Certificates to ensure public hygiene standards Our 10 large branches, 8 Dohome To-Go, and Dohome head office are qualify for certificate which is granted by Department of Health to ensure public hygiene standards. Example of certificates 5
Dohome Business Overview
Dohome Business Overview As of 30 June 2020 Target Customer Group One-stop Home Products Destination International Suppliers Domestic Suppliers End-users Resellers Contractors Government (Retail) (Wholesale) and Projects Agencies and State Enterprise Home Products Services & Solution Retail Space (230,814 sq.m.) Warehouse Space (255,178 sq.m.) Branches Delivery Service Repair and Maintenance Service Home Installation Service 10 8 branches in operation branches in operation 6 7 Design Center new branches within 2021 new branches within 2020 Dohome Dohome To-Go Special Order Sales Team Call Center and Telesales 7 Website 7
Operating Results for 2Q2020
P&L Summary 2Q2019 2Q2020 Changes THB mm % THB mm % THB mm % 4,571.6 4,442.8 98.5 98.5 128.8 2.9 Revenue from sales 44.5 33.8 0.8 1.0 10.7 31.7 Revenue from services 24.2 34.0 0.8 0.5 -9.8 -28.8 Other incomes 4,640.3 4,510.6 100.0 100.0 129.7 2.9 Total revenue 3,926.7 3,736.5 82.8 84.6 190.2 5.1 COGS (1) 689.4 740.1 16.5 14.9 -50.7 -6.9 Gross profit 474.5 455.5 10.1 10.2 19.0 4.2 Selling & Administrative expenses 0.04 - - 0.001 0.04 N/A Other expenses 239.1 318.6 7.1 5.2 -79.5 -25.0 EBIT 57.3 75.9 1.7 1.2 -18.6 -24.5 Interest expenses 35.4 50.2 1.1 0.8 -14.8 -29.4 Tax expenses 146.4 192.5 4.3 3.2 -46.1 -24.0 Net income 117.5 102.8 2.3 2.5 14.7 14.3 Depreciation & Amortization 421.4 9.3 356.6 7.7 -64.8 -15.4 EBITDA Note: (1) Gross profit margin calculated based on revenue from sales and services 9
Revenue from Sales and Services THB mm 0.2% -0.7% -3.1% 18,576 18,445 17,869 4,616 4,477 2017 2018 2019 2Q2019 2Q2020 Annual Revenue from Sales and Services Growth Quarter Revenue from Sales and Services Key Changes SSSG was positive 0.4% YoY in 2Q2020 due to the company’s strategy to push sales through direct sales team and ◼ E-commerce during the temporary closure of retail space in the 8 large branches to compensate sale loss during the closure and the increase in revenue from all branches after the reopening In 2Q2020, total revenue from sales and services increased 3.1% YoY although there were the outbreak of COVID-19 ◼ pandemic and strict government measures to control the pandemic causing the temporary closure of retail space in 8 large branches from total of 10 large branches and all 6 Dohome To-Go branches. The revenue increase was due to: Positive SSSG of 0.4% YoY ➢ Additional revenue from new opening branches, namely Petchkasem branch and 6 Dohome To-Go branches ➢ as well as the revenue increase from the branches in the ramp-up phase Note: (1) same store sales growth includes only the revenue from the branch that completed its full year operation. 10
Gross Profit and Gross Profit Margin THB mm / % to revenues from sales and services 16.6% 16.5% 16.2% 14.9% 14.6% 3,017 2,958 2,684 740 689 2017 2018 2019 2Q2019 2Q2020 Quarter Gross Profit Annual Gross Profit Gross Profit Margin Key Changes ◼ Gross Profit Margin of 2Q2020 decreased to 14.9% from the Gross Profit Margin of 2Q2019 at 16.5% which was mainly from the temporary closure of retail area in the 8 large branches from total of 10 large branches and all Dohome To- Go as the results of pandemic of COVID-19. The closure of retail area caused a significant decrease in retail sales which generated higher gross profit margin. However, after the branches have reopened and operated as normal, the Company’s Gross Profit Margin came back to normal level. 11
High Quality House Brand Products Revenue Contribution from House Brand Furnitures and Home Decorations % to revenues from sales and services 17.1% 16.8% 16.7% 15.6% Household Items 2018 2019 2Q2019 2Q2020 House Brand Products ◼ The company gives high importance to product sourcing in order to obtain quality products at competitive prices Tools and Hardwares ◼ The company has a House Brand development team to help ensure that a variety of product options are available for customers ◼ Conduct research to study the needs of customers and the competitive landscape in the market in order to optimize product Light Bulbs selection ◼ House Brand product procured only from qualified suppliers, both domestically and internationally ◼ High-quality products meeting product standards with over 115 certifications issued by Thai Industrial Standard 12
SG&A Expense THB mm / % to revenues from sales and services 10.6% 10.3% 10.2% 10.3% 8.7% 1,879 1,907 33 10 1,614 353 375 (6) 266 160 93 147 162 85 163 369 364 333 252 223 144 474 455 (11) 4 72 85 28 21 44 644 643 34 623 99 93 65 74 157 157 2017 2018 2019 2Q2019 2Q2020 Selling Employee Expense Admin Employee Expense Depreciation and Amortization Delivery Expense Marketing Expense Others SG&A to Revenue from Sales and Services Allowance for bad debt (reverse ) Key Changes Selling and administrative expenses of 2Q2020 increased by THB 19.0 mm or 4.2% YoY, which was mainly due to ◼ the increases of administrative employee’s expenses, depreciation from new branches (Petchkasem branch and Dohome To-Go), and delivery expense which was in line with higher revenue from direct sales. However, the allowance for doubtful accounts decreased in accordance with improved effectiveness of debt ◼ collection, as well as the expenses of utility and consumable material reduced in line with temporary branches closure and cost saving programs. 13
EBITDA and Net Profit EBITDA THB mm / % to total revenue 9.7% 9.3% 8.7% 7.7% 6.8% 1,807 1,563 1,254 421 357 2017 2018 2019 2Q2019 2Q2020 EBITDA EBITDA Margin Net Profit THB mm / % to total revenue 5.0% 4.3% 4.0% 3.2% 2.4% 931 726 192 146 439 2017 2018 2019 2Q2019 2Q2020 Net Profit Net Profit Margin EPS 0.90 0.31 0.45 0.14 0.08 (THB) 14
Recommend
More recommend
