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TRANSCRIPT
Company Presentation
Dohome Public Company Limited
Table of Contents
Dohome Business Overview1
Operating Results for 1Q20202
Business Outlook3
Business Updated during COVID-19 Situation4
1
Dohome Business Overview
Dohome Business Overview
As of 31 March 2020
3
One-stop Home Products Destination
Retail Space (229,517 sq.m.) Warehouse Space (255,178 sq.m.)
Branches
Sales Team
Call Center and Telesales
Website
International Suppliers Domestic Suppliers
Delivery Service
Repair and Maintenance Service
Home Installation Service
Design Center
Special Order
Target Customer Group
Home Products Services & Solution
Resellers(Wholesale)
Government Agencies and
State Enterprise
Contractorsand Projects
End-users(Retail)
Dohome Dohome To Go
branches in operation
new branches within 2021
branches in operation106
684 new branches within 2021
3
Operating Results for 1Q2020
P&L Summary
1Q2019 1Q2020 Changes
THB mm % THB mm % THB mm %
Revenue from sales 4,909.5 98.6 4,543.3 98.3 -366.2 -7.5
Revenue from services 40.3 0.8 35.1 0.8 -5.2 -12.9
Other incomes 30.5 0.6 43.5 0.9 12.9 42.4
Total revenue 4,980.2 100.0 4,621.8 100.0 -358.5 -7.2
COGS 4,139.2 83.1 3,871.6 83.8 -267.7 -6.5
Gross profit (1)
810.5 16.4 706.8 15.4 -103.7 -12.8
Selling & Administrative expenses 453.4 9.1 464.1 10.0 10.7 2.4
Other expenses 3.1 0.1 0.1 0.0 -3.0 -96.6
EBIT 384.5 7.7 286.0 6.2 -98.5 -25.6
Interest expenses 76.5 1.5 64.4 1.4 -12.0 -15.8
Tax expenses 61.4 1.2 44.3 1.0 -17.1 -27.8
Net income 246.7 5.0 177.3 3.8 -69.4 -28.1
Depreciation & Amortization 100.4 2.0 118.0 2.6 17.6 17.5
EBITDA 484.9 9.7 404.0 8.7 -80.9 -16.7
Note: (1) Gross profit margin calculated based on revenue from sales and services5
Revenue Contribution by Product Group
47.3% 48.1% 44.4% 47.0% 43.0%
36.2% 35.3% 37.5% 37.0% 39.0%
16.5% 16.6% 18.1% 16.0% 18.0%
2017 2018 2019 1Q2019 1Q2020
Construction Materials Repair & Maintenance Home Decoration
% to revenues from sales and services
Key Changes
◼ Sales from construction material and repair & maintenance product group of 1Q2020 dropped 16.0% YoY and 2.7% YoY, respectively, while sales growth from home decoration product group slightly rose 6.3% YoY.
◼ As a result, sales contribution from construction material product group dropped to 43.0% while the contribution from repair & maintenance and home decoration product group rose to 39.0% and 18.0%, respectively.
6
18,576 18,445 17,869
4,950 4,578
0.2% -0.7%-3.1%
2017 2018 2019 1Q2019 1Q2020
Annual Revenue from Sales and Services Growth
Revenue from Sales and Services
THB mm
Key Changes
◼ Revenue from sales and services of 1Q2020 was down by 7.5% YoY, which was mainly from
➢ the temporary closure of 8 large branches and 6 Dohome To-Go for 10 days in 1Q2020 due to outbreak of Coronavirus disease 2019 (COVID-19) and the government’s epidemic prevention measures. Thus, revenue from POS significantly decreased during the ten days period.
➢ the slowdown in the country’s economy.
For all the reason above, same store sales growth (1) was negative 9.9% YoY.
◼ However, revenues from branches in the ramp-up phase continue to increase, despite being affected from the outbreak of Coronavirus disease.
Note: (1) same store sales growth is considered only the revenue from branch which completed its full year operation.
Quarter Revenue from Sales and Services
7
Gross Profit and Gross Profit Margin
3,0172,684
2,958
810 707
16.2%14.6%
16.6% 16.4%15.4%
14.9% 15.4%
2017 2018 2019 1Q2019 1Q2020
Annual Gross Profit Gross Profit Margin Normalized Gross Profit Margin
Key Changes
Changing the accounting policies on the provision for obsolete and slow-moving of inventory in 1Q2019 results in the decrease of THB 73.3 mm in cost of goods sold in 1Q2019 due to the reversal of provision. However, if consider gross profit margin without the impact from change in accounting policies, normalized gross profit margin of 1Q2019 would be 14.9% which was lower than gross profit margin of 1Q2020 at 15.4%
Normalized Gross Profit Margin of 1Q2020 increased from 14.9% to 15.4% YoY due to:
◼ Increasing sales contribution from repair & maintenance and home decoration product group
◼ Increasing in house brand products revenue contribution
◼ Increasing in revenue from distribution center which started to cover cost
THB mm / % to revenues from sales and services
Quarter Gross Profit
8
High Quality House Brand Products
14.4%16.0%
14.5%17.3%
2018 2019 1Q2019 1Q2020
% to revenues from sales and services
Revenue Contribution from House Brand
House Brand Products
◼ The company gives high importance to product sourcing in order to obtain quality products at competitive prices
◼ The company has a House Brand development team to help ensure that a variety of product options are available for customers
◼ Conduct research to study the needs of customers and the competitive landscape in the market in order to optimize product selection
◼ House Brand product procured only from qualified suppliers, both domestically and internationally
◼ High-quality products meeting product standards with over 136 certifications issued by Thai Industrial Standard
Tools and Hardware
Bathroom
Furniture and Home Decoration
Home Appliances and Light Bulbs
Distribution Center
Distribution Center
◼ Located in Pathum Thani and began operation in June 2018
◼ Total warehouse area of 41,580 sq.m. (50% Utilization after ASRS is fully operating)
◼ Functions:
◼ Receiving inventory
◼ Picking inventory
◼ Dispatching Inventory to customers and branches
◼ Installing the ASRS system to increase inventory management efficiency
◼ Revenue from distribution center started to be higher than cost which would reduce cost of goods sold
Receiving
Picking
Dispatching
Suppliers
Cross dock
Store
Customers Stores
Inventory Management at the Distribution Center
10
SG&A Expense
Key Changes
◼ Selling and administrative expenses of 1Q2020 increased by THB 10.7 mm or 2.4% YoY, which was mainly due to the increase of administrative employee’s expenses according to the restructuring of organization and the increase in depreciation due to the opening of Petkasem branch.
THB mm / % to revenues from sales and services
623 644 643
162 158
144223 252
55 71
333
364 369
91 104
163
162 147
41 41
85
160 93
1412
266
353375
90 78
1,614
1,907 1,879
453 464
8.7%10.3% 10.6%
9.2% 10.1%
2017 2018 2019 1Q2019 1Q2020
Selling Employee Expense Admin Employee Expense Depreciation and Amortization
Delivery Expense Marketing Expense Others
SG&A to Revenue from Sales and Services Allowance for bad debt (reverse)
(6)
33 10
6 (5)
11
EBITDA and Net Profit
1,8071,254
1,563
485 404
9.7%6.8% 8.7% 9.7% 8.7%
2017 2018 2019 1Q2019 1Q2020
EBITDA EBITDA Margin
EBITDA
931439
726 247 177
5.0%2.4% 4.0% 5.0% 3.8%
2017 2018 2019 1Q2019 1Q2020
Net Profit Net Profit Margin
Net Profit
EPS(THB)
0.90 0.31 0.45 0.18 0.10
THB mm / % to total revenue
THB mm / % to total revenue
12
Balance Sheet at a Glance
31 December 2019 31 March 2020
Assets THB mm % THB mm %
Cash and Cash Equivalents 204.0 1.1 80.4 0.4
Accounts Receivable and Other Receivables 859.9 4.7 944.6 5.2
Inventory 7,048.2 38.8 7,046.4 38.8
Property, Plant and Equipment 9,705.3 53.5 9,694.0 53.4
Right of Use - Assets - - 282.1 1.6
Others 334.3 1.8 110.3 0.6
Total Assets 18,151.7 100.0 18,157.8 100.0
Liabilities
Bank Overdrafts and Short-term Loan 5,731.7 31.6 5,139.5 28.3
Accounts Payable and Other Payables 2,488.2 13.7 2,658.3 14.6
Right of Use - Liabilities - - 179.7 1.0
Long-term Loan and Financial Lease Liabilities 3,339.1 18.4 3,413.9 18.8
Others 132.3 0.7 186.1 1.0
Total Liabilities 11,691.3 64.4 11,577.5 63.8
Shareholder’s Equity
Issued and Paid-Up Capital 1,856.2 10.2 1,856.2 10.2
Premium on Share Capital 3,647.0 20.1 3,647.0 20.1
Retained Earnings 1,549.7 8.5 1,683.6 9.3
Others -592.4 -3.3 -606.5 -3.3
Total Shareholder’s Equity 6,460.4 35.6 6,580.3 36.2
13
Key Financial Highlight
Financial RatiosCash Cycle
L/E
Current Ratio
ROECash Cycle
InventoryDays
APDays
ARDays
21.7%
9.2%11.2% 10.0%
2017 2018 2019 1Q2020
126 116 127 131
2017 2018 2019 1Q2020
156147
159 163
2017 2018 2019 1Q2020
20 18 17 18
2017 2018 2019 1Q2020
49 49 49 50
2017 2018 2019 1Q2020
0.8 0.80.9 0.9
2017 2018 2019 1Q2020
3.1
2.5
1.8 1.8
2017 2018 2019 1Q2020
14
Business Outlook
Existing: Large Future: Large
(10 stores) New (3 stores)
Ubon Ratchathani Q3/20: Surin
Nakhon Ratchasima Q3/20: Map Ta Phut, Rayong
Rangsit Q4/20: Laem Chabang, Chon Buri
Khon Kaen
Udonthani
Rama II
Bang Bua Thong
Chiang Mai
Bangna
Phetkasem
Existing: To Go Future: To Go
(6 stores) New (5 stores)
Makro Charansanitwong Q2/20: Cosmo Walk
Makro Sathorn Q2/20: Chatchawan Market
Big C Bang Phli Q2/20: Thaisomboon Market
Tesco Lotus Korat Q3/20: Ruaysub Market
Pantip Ngamwongwan Q3/20: Thairungthip Market
Tesco Lotus Bangna
Existing Branches and Future Branch Expansion
As of 31 March 2020
Chiang Mai
Udonthani
Khon Kaen
Ubon Ratchathani
Nakhon Ratchasima
Bang Bua Thong
Map Ta Phut, Rayong
Bangna
Rama 2
Rangsit
Phetkasem
Surin
Laem Chabang, Chon Buri
Dohome To GoExisting: 6 Stores
Large Store Branches
16
1 2 3
4 5
New: Dohome To Go 5 Branches
Location Ruaysub Market
Opening Q3/20
Location Thairungthip Market
Opening Q3/20
Location Cosmo Walk
Opening Q2/20
Location Chatchawan Market
Opening Q2/20
Location Thaisomboon Market
Opening Q2/20
17
Business Updated during COVID-19 Situation
22 March 2020According to the Government’s measures to deal with COVID-19, we temporarily closed 8 large branches and 6 Dohome To-Go
Rangsit, Bang Bua Thong, Rama 2, Petchkasem, Korat, Udon, Khon Kaen, Chiang Mai Branch, and 6 Dohome To-Go
3 MAY 2020The government has relaxed the control measures, we have resumed opening 4 large branches including
Rama 2, Petchkasem, Korat, Udon
17 MAY 2020The government has allowed the opening of all construction material stores on May 17, we have resumed opening additional 4 large branches and 6 Dohome To-Go
Rangsit, Bang Bua Thong, KhonKaen, Chiang Mai, and 6 DohomeTo-Go
corporate strategy to reduce the business impacts during COVID-19 situation as follows
1. Focusing on services through online channel (E-Commerce) and direct phone channel (Back Office) as well as delivery to customer’s home.
2. Maintaining profitability and financial status by reduced the expenses and delayed some expense
3. Considering credit customer more tightly
4. Taking care our employees such as
❖ Service staff needs to wear a face mark while working
❖ Providing body temperature examination
❖ Changing of appropriate working time for employee attendance, to reduce the risk of travelling in rush hours and congestion.
❖ Making life insurance (COVID-19) for employees
Dohome’s Current Status and Corporate Strategy
19
Dohome’s Current Status and Corporate Strategy
20
Prevention Measures at Store
Set screening point and body temperature measurement for all customers at the entrance area
Add service point for hand sanitizer and install the sign to
advise the operation
Measure daily body temperature of all staffs
before working
Clean the frequently exposed equipment with antiseptic
21
Require online register via QR code to check in
Mark the appropriatedistance in waiting line
Employees must wear a face mask at all time
Set the plastic barriers between cashier
22
Certificates to ensure public hygiene standards
Our 10 large branches, 6 Dohome To-Go, and Dohome head office are qualify for certificate which is granted by Department of Health to ensure public hygiene standards.
Example of certificates
Q&A