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TTF: Explanation for business result in Q2
Truong Thanh Furniture Corporation (TTFC) has explained business result in Q2/08 as follows:
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Q1/2008 |
Q2/2008 |
Difference |
Rate |
|
Net sales |
244,269,654,225 |
133,226,498,303 |
- 111,043,155,922 |
- 45% |
|
Gross profit |
42,988,322,985 |
44,621,083,882 |
+ 1,632,760,897 |
+ 3.80% |
|
Profit after tax |
13,303,435,191 |
8,381,062,453 |
- 4,922,372,738 |
- 37% |
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Profit after tax of parent company’s shareholders |
12,436,315,008 |
7,366,176,072 |
- 5,070,138,936 |
- 40.77% |
• Net revenue decreased 45%:
The company produces 65% of outdoor wood furniture, 25% of indoor wooden furniture and 10% of flooring. For outdoor wood furniture, it is seasonally consumed from October of the previous year to March of the next year. In Q2 and Q3, sales mainly come from indoor and flooring products. In order to overcome the situation, the company has set up one more factory with capacity of 3,000 conts/year with purpose of producing indoor products and maintaining difference between quarters no more than 20%.
• Profit after tax reduced 37%:
It is because of impact on sales mentioned above. However, level of decline was less due to decrease of cost of goods sold in Q2/08.
• Gross profit increased 3.8%:
Cost of goods sold reduced in Q2/08 because of buying materials at cheap price, improving production by training workers directly and decrease of production expenses.
HoSE
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