KCE Reports 25% Drop in 2023 Earnings amid Slower Demand and Lower Margin

KCE Electronics Public Company Limited (SET: KCE) has announced its 2023 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 2023 2022
Net Profit (Loss)
Million Baht
1,719.58 2,317.23
Earning Per Share
1.4500 1.9600
% Change -25.79

KCE reported a net profit of Bt1,719.6 million in 2023, decreased 25.79% from a net profit of Bt2,317 million in 2022. The decrease was due to lower operating performance in 2023, impacted by the global economic slowdown, leading to a significant reduction in global demand for electronics in 1H23.

Consolidated sales revenue in THB decreased from Bt18,456.3 million in FY22 to Bt16,343.6 million in FY23, representing a decline of 11.45% Y-o-Y. Net profit margin dropped from 12.6% in 2022 to 10.5% in 2023.

KCE stated that FY23 proved to be a challenging year for the electronics PCB industry, primarily due to the global economic downturn, resulting in diminished customer demand across all regions and the necessary adjustment of oversupplied inventory. Consequently, the total volume of PCB sales decreased by 9.8% Y-o-Y. However, despite these challenges, special-grade PCBs, particularly HDI products, continued a positive growth trend, showing a 1.3% Y-o-Y. The company also has a backlog of orders awaiting production and delivery for the upcoming year. Notably, these HDI products contributed to 22% of the total PCB sale volumes in FY23, compared to 19% and 11% in FY22 and FY21, respectively.