KCE Electronics Public Company Limited (KCE) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;
KCE reported a consolidated net profit of 250.0 million baht in 3Q20, representing an increase of 250.6% QoQ and a slight reduction of 2.0% YoY. The improvement in operating results was due mainly to a recovery of sales post COVID-19 and a reduction in the cost of goods sold that led to a higher profit margin.
Sales revenue in 3Q20 amounted to 2,721.8 million baht, representing a reduction of 11.9% YoY. Following the recovery in the automotive market and the easing of COVID-19 lockdown measures, customer orders returned nearly to normal levels, particularly in September, and PCB sales increased by 26.6% QoQ, despite an order backlog of approximately USD4.5 million at the end of the quarter. Changes in foreign currency exchange rates had an impact on revenue recognition in Thai baht terms, which resulted in a gain of 59 million baht YoY.
The cost of goods produced during 3Q20 declined gradually following an increase in orders and production capacity utilization, particularly in September. Sales of products, including consignment usage, comprised finished products in inventory that were produced the previous month that carried a higher cost, and as a result, the average gross profit margin as a percentage of sales widened slightly QoQ to 19.01% from 18.17% despite the THB appreciation and a higher price of copper used, but declined YoY.