KCE’s 2Q22 Earnings Drop 7% to THB572 Million due to a Lower FX Gain, Offers THB1.0 Dividend

KCE Electronics Public Company Limited (SET: KCE) has announced its consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2Q22 2Q21
Net Profit (Loss)
Million Baht
572 618
Earning Per Share
0.48 0.52
% Change -7.43
6 Months 2022 2021
Net Profit (Loss)
Million Baht
1,162 1,122
Earning Per Share (Baht) 0.98 0.95
% Change 3.61

For the three month period ended June 30, 2022,  KCE reported sales and net profit of THB4,667.4 million and THB571.9 million, respectively, compared to THB3,536.1 million and THB617.8 million in the second quarter of 2021.

The net profit in 2Q22 presented a decrease compared to both Q-o-Q and Y-o-Y, mainly due to a reduction of FX gain and a non-operating loss from the recognition of fair value on a financial investment in the period. This resulted in basic earnings per share of THB0.48 in 2Q22.

Consolidated sales revenue in Baht terms in 2Q22 was reported at THB4,667.4 million, representing an increase of 2.97% Q-o-Q and 31.99% Y-o-Y, while sales revenue in USD terms decreased by 1.18% Q-o-Q but increased 20.17% Y-o-Y. The fluctuation in foreign currency exchange rates in the period caused a gain in revenue recognition in Baht terms by THB118.8 million in Q-o-Q and THB273.5 million in Y-o-Y.

The gross profit margin was at 22.8 %, decreasing from 29% of the same period last year which due to the special prices adjustment to recover the material prices increasing in 2Q21. The impact on gross margin in this year mainly due to the high raw material cost from the continued increase in price of Copper which led to higher cost of goods sold by 2.4% Yo-Y, together with prices increasing of other supplies and chemical. The change in foreign currency exchange rates also reflected to higher cost of imported material and supply. Moreover, the fixed overhead cost, electricity charge, adjusted the higher rate in this period.

In addition, KCE  has announced a 1H22 interim dividend of THB1.00 per shara to be paid on 9 September 2022. The ex-dividend date is on 22 August 2022.