“Why DO HOME’s Profit is Collapsing? Analysis of Q1/2023 Financial Statements”

It looks like the previous state measures, whether it’s a good shop, have a night. or we travel together is expected to be the first-year earnings dope of retail stocks. Especially related to construction materials to stand out and make a bang. one of them is Do Home Public Company Limited or DO HOME

In addition to the above factors DO HOME It is also seen that there is a unique factor from the recognition of damage insurance from the Ubon Ratchathani branch flooding in the first quarter of 2023 that will boost profit growth as well…

But Ngai released the first quarter’s financial statements. DO HOME The whistle disappeared 43.8% only 258.35 million baht Compared to the first quarter of 2022 with a net profit of 459.53 million baht.

What a disappointment…

But what happened to DO HOME How about this..? Profits have collapsed like this…

If you look at the guts … the legs of the income, although not growing much But still able to grow at 1.9% at 8,514.62 million baht, divided into sales revenue 8,375.16 million baht, an increase of 1.6%, service income 86.43 million baht, an increase of 18.3%, sales and service income 8,461.59 million baht, an increase 1.7% and other income 53.03 million baht, an increase of 26.1%

While the cost leg consists of cost of sales of 7,064.93 million baht, an increase of 3.1%, while selling and administrative expenses increased 14.5% to 1,000.68 million baht, mainly due to the increase in the cost of new branches such as spend employees depreciation of assets, etc., an increase in utility expenses from higher electricity prices and other expenses at 6.38 million baht, an increase of 1,552.1%

As for finance costs, it was 122.47 million baht, an increase of 81.7% from rising interest rates in line with the policy rate increase situation.

Oh… actually DO HOME Profits are eaten up by costs.This is it..!!

in this quarter DO HOME Gross profit was at 1,396.66 million baht, down from 1,464.95 million baht in Q1/2022 and gross profit margin was 16.5%, down from 17.6% in Q1/2022 as a result of the cost of steel products. higher enough

As for the recognition of damage insurance from the flood event, Ubon Ratchathani Branch It hasn’t happened this quarter yet. expected to be postponed to recognize in Q2/2023 instead

Mina, when you see the last line of numbers Sickness in ducks occurred along the same lines…

But let’s be honest… at least the analysts are not negative. DO HOME Nah…

by Dao Securities still forecasts profits for the year 2023 at 1,300 million baht, growing 62% from the previous year from less volatile steel prices. The profit trend for the rest of the year is still recovering. However, branch expansion is in the second half of the year. thus expecting revenue from new branches to be quite limited It also expects gross margins to continue to recover in the second half of the year. Including less volatile steel prices and high-cost inventory began to run out.

must continue to follow that The rest of the quarter this year, the results of DO HOME Will it really recover?..?

But if not… must sing.Better retreat…not better Then..!!

…Eh Eh Eh…