17 | Feb | 2015

KCE proudly announces record-high 2014 operating results with 21.4% increase in sales and 79.8 rise in profit

KCE Electronics, a leading manufacturer and exporter of Printed Circuit Board (PCB) in South East Asia, has proudly announced that the company ended the year 2014 impressively with record-high operating results, generating Baht 11,284.3 million in sales and Baht 2,109.8 million in net profit, a remarkable rise of 21.4% and 79.8% respectively from the same figures in 2013.

Mr. Bancha Ongkosit, Executive Chairman, KCE Electronics Public Co., Ltd. or KCE, revealed that, “Throughout 2014, the new sales and profit records for the company and its subsidiaries (“the Group”) have been sequentially announced from quarter to quarter, which led this year to the best performing year ever for KCE. Total consolidated sales revenue was increased from Baht 9,293.9 million in 2013 to Baht 11,284.3 million in 2014, the year-over-year growth of 21.4 %”

“The increase in sales was in line with our predictions. The strong sales growth was primarily a result of increased sales volume, the year-over-year increase of 14.1 % in square footage. The Company attributes this to the effects of i) the improved market condition, particularly in the automotive industry and the steadily increased demand from current customer base and the new business, ii) the outperformed operation of KCE Technology; a subsidiary, running at one half of the Group's total capacity, and iii) the substantial improvement in manufacturing efficiency in all production facilities, which enabled factory to increase its output.”, explained Mr. Bancha.

Gross margin as a percentage of sales was increased significantly from 26.3% to 31.6% year-over-year, which was due to the lower level of cost of goods sold, together with foreign exchange rate effects. The primary contributor to the costs reduction was the increased capacity utilization rates, continuing manufacturing efficiency and the stabilization of low scrap rate; the reduction in some material costs also contributed.

The overall selling and general administrative expense for 2014 was at the average of 14.9% to total sales, increased by 1.2% as compared with 2013. The increase was related to the higher employee benefit expenses which was in accordance with the company performance, the expense recognized from ESOP share subscription, impairment charge of unused machines and the pre-operating cost for the new plant; mostly be the cost of operator trainees, while the commercial production is scheduled in the first quarter of 2015.

“Normalized operating profit for 2014 was Baht 1,827.9 million, representing a 68.6% increase as compared with 2013. The increase was mainly attributed to the revenue growth and the improved margin rates, offset by higher general administrative cost. Consolidated net profit for 2014 was Baht 2,109.8 million, an increase of 79.8% year-over-year. Compared with 2013, basic earnings per share increased from Baht 2.53 to Baht 3.89 per share in 2014.”, added Mr. Bancha.