The Unrelaxed SPA!

The first quarter of 2020 is already ended, so it’s time to wait for the operating result, how was it going..? Who is going to rise, who is going to fall or who is going to break even, but some for sure has to delay its quarterly financial performance report because of covid-19

 

One company that shall keep eyes on during this crisis is Siam Wellness Group Company Limited or SPA.

 

SPA is quite sympathetic….because last year the Chinese clients which accounted for 55% just returned to travel in Thailand after the 2018 Phuket boat capsizing.   

 

The happiness was last too short…since the early of this, covid-19 has emerged in China and the Chinese authorities announced lock down the country, prohibited its citizens to leave the nation as a measure to prevent the contagion.

 

Causing Chinese tourists disappeared immediately. It was a covid-19’s first punch to hit SPA.

 

Moreover, the novel coronavirus is intensifying in every region across the world and  continuing widespread, several countries are under crisis and also Thailand. The government has activated the Emergency Decree and ordered schools, sport complexes, boxing stadiums, cinemas, nightspots, bars, fitness, massage parlors and spas to shut down nationwide from March 18 – April 31 to halt the virus spreading.

 

SPA thereupon closed all 33 branches in Bangkok Metropolitan area and 27 branches in other provinces, including Rarinjinda, Wellness Spa, Let’s Relax Spa, Baan Suan Massage and Stretch Me by Let’s Relax. 

 

And then a second punch that attacked SPA. It seem like an income gate of SPA has closed unquestioningly.

 

This condition could remain at least one and a half month as it depends on when will the covid-19 situation will be solved..? And while waiting for the solution, SPA still having to carry expenses of rent, staffs salary, executive salary, etc.

 

March was a really tough month of SPA, and the 1Q2020 revenue seem doesn’t look good…

 

Even the director of SPA has said earlier that they were preparing to cope with fixed costs at a higher level of 50% of the total cost by 1) request a reduction of the space rental 2) reduce some masseurs work hours and 3) reduce the salary of executives… 

 

But the situation is too severe to handle. And if 1Q2020 was already bad, then 2Q2020 could be even worse as until now still haven’t seen any sign of erasing the covid-19 worrisome. And outbreak has a tendency to be more amplify.

 

Therefore, SPA will keep losing its income…nowadays SPA is like in a coma.

 

Let’s see whether SPA exercise the right to postpone delivering  a 1Q2020 consolidated financial statement or not..?

 

By the way, wishing SPA to overcome the crisis.