The total amounts of sugarcane crushed in 2006 and 2005 were close. They were lower than that in 2005 due to droughts. In 2006, the quality of crushed sugarcane was not relatively good. In addition, some of the cane juice was used in ethanol production. The Company, thus, produced 6 percent less sugar, a decrease from 425,612 tons to 399,046 tons. The amount of molasses produced in 2006 was close to that in 2005. To facilitate analysis and calculation of the corporate income ratio (revenues from sale of sugar and molasses, and services), the income statement was presented in a new format, shown in Table 6, indicating quarterly income statements, yearly income statements, and gross margin. In the first and second quarters, the Company had relatively high net profit as the cost of inventory of molasses was realized at the average selling price. In the third and fourth quarters of 2006, the Company had relatively high net profit compared to that in 2005, due to that the corporate ethanol business performed almost stable quarterly operating results. As a result, in the third and fourth quarters of 2006 when operating results of the ethanol business were included, the Company had higher net profit than that in 2005 when operating results of the ethanol business were not included. The gross profit margin in 2004 was 23.08 percent, increasing compared to a 22.40 percent gross margin in 2005. The sugar business had 20.95 percent gross profit margin close to 21.09 percent in 2005. The ethanol business had 39.09 percent gross profit margin. There was a significant decrease in gross profit margin in the service segment, from 68.27 percent in 2005 to 47.95 in 2006. Revenue in the service segment was generated from exporting and port services which had high fixed costs. Decreased amount of sugar produced and exported resulted in decreased gross margin in the service segment.
Table 6 : Consolidate income statement in new format for calculating financial ratio 2Q06 1,646 (1,189) 457 179 (83) 96
2006 3Q06 1,750 (1,477) 273 44 (25) 20
4Q06 1,534 (1,297) 237 54 (20) 34
SUM 6,086 (4,681) 1,405 413 (189) 224
1Q05 918 (454) 464 109 (52) 57
2Q05 1,496 (1,178) 318 111 (33) 78
2005 3Q05 1,576 (1,319) 257 51 (23) 29
4Q05 1,223 (1,094) 129 47 (14) 34
SUM 5,213 (4,046) 1,168 319 (122) 197
% Change 17% 16% 20% 29% 55% 13%
Sales & Service Cost of sales & Service Gross Profit Other Incomes Other Costs Difference SG&A Selling Expense Proceed to Stabilization Fund Administrative Expensense Directorsû Remuneration Total Profit Before Interest Taxes Interest Tax Profit Minority & Others Net Profit Gross Margin Net Profit Margin Volume of Sugar (Tons) Price of Sugar (THB/Ton) Volume of Molasses (Tons) Price of Molasses (THB/Ton) Volume of Ethanol (M Litre) Price of Ethanol (THB/Litre)
(27) (35) (87) (16) (166) 345 (4) (88) 253 (9) 244 38% 21% 86,068 12,032 20,277 2,988 2.19 18.70
(30) (36) (61) (8) (135) 419 (33) (103) 282 (18) 264 28% 16% 99,844 14,054 21,218 3,497 7.36 19.94
(29) (31) (70) (8) (139) 154 (42) (5) 107 (6) 101 16% 6% 96,895 14,785 19,156 3,692 8.69 24.72
(29) (32) (83) (8) (151) 120 (30) (17) 73 (3) 70 15% 5% 82,549 14,649 30,423 3,671 7.32 25.30
(115) (134) (301) (40) (591) 1,038 (109) (213) 715 (36) 679 23% 11% 365,356 13,906 91,074 3,483 25.57 22.99
(27) (35) (85) (8) (155) 365 (6) (96) 264 (17) 247 51% 27% 81,483 10,434 38,351 993
(45) (31) (66) (7) (149) 246 (16) (55) 175 (18) 157 21% 10% 124,660 10,734 57,252 2,002
(44) (26) (70) (7) (147) 139 (14) (39) 86 (12) 74 16% 5% 131,277 10,857 47,672 2,188
(39) (27) (55) (7) (128) 35 (6) (4) 25 (7) 18 11% 1% 99,036 11,141 32,632 2,545
(155) (119) (264) (41) (579) 786 (42) (194) 550 (55) 495 22% 9% 436,455 10,807 175,907 1,933
-26% 13% 14% -2% -2% 32% 159% 10% 30% -34% 37% 3% 17% -16% 29% -48% 80%
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1Q06 1,156 (718) 438 135 (61) 73
INCOME STATEMENT