PAP sees increased profit by 12.90% in Q1 despite the pandemic COVID-19
PAP sees increased profit by 12.90% in Q1 despite the pandemic COVID-19
Although the COVID-19 pandemic has immensely impacted the steel industry, Pacific Pipe Company Public Limited (PAP) managed to make a net profit, which rose 12.90% to 44.27 million Baht over the same period last year in the first quarter of 2020, due to the effective management strategy of the products, customers, and costs.
For the first quarter of this year, which ended on 31 March, 2020, sales and services revenue dropped to 1.9524 billion Baht, a decrease of 20.08% over the same period of the previous year, which was equivalent to a loss of 490.68 million Baht. This accounted for the economic regression, a delayed paymentby the government, and dramatic drop in the price of steel worldwide compared to last year.
The net profit for the first quarter of 2020 rose from 39.21 to 44.27 million Baht, an increase by 12.90% or 5.06 million Baht (QOQ). However, there was an increase in the gross profit of this year, which represented 9.30% of the total income opposed to the previous year’s, which stood at 7.53 % thanks to the price of steel worldwide that increased from the lowest point in late 2019 and better management on the budget.
Mrs. Aeimporn Panyasai, Chief Executive Officer of PAP, said that ‘The overall earnings of Q1/2020 was lower than the expectation since the lockdown triggered by the COVID-19 pandemic in March, which led to the temporary close of retail construction stores in several areas, difficulty in logistics, and shortage of labor on various construction sites. In light of the pandemic, the company adjusted its service strategy to be responsive to the current situation in several aspects, including planning a system product line, a mega-project work, and a strategy for customer management, especially principal contractors and industry clients, which contributed to the growth in the profit for Q1/20202.
For the second quarter of this year, PAP has still placed emphasis on developing the quality of its products and services in order to enhance value to the products and cater to the diverse needs of customers. This has become the principal strategy under the business at PAP. In addition, digital marketing is being used to expand the marketing channels, keep the company well-attuned to the shifting behavior, and plan marketing promotions to continuously provide support to partners.
Moreover, the company has changed its top executive positions to prepare for the future challenges as follows: Ms. Thitima Wattanasakdakul has been positioned as Assistant to the Chief Executive Officer, who oversees the procurement strategy, which is the essence of the steel industry. Mr. Thitakorn Usayaporn, who is adept in technology, has become Chief Operating Officer effective on 4 May, 2020.
As a professional executive, he has a wealth of working experience in the information technology field for more than 30 years with several leading corporations; such as, Oracle (Thailand), Microsoft (Thailand), DTAC, and M Pictures. Before resuming his position at PAP, he was Chief Executive Officer of SVOA Public Company Limited.
About PAP
Pacific Pipe Public Company Limited (PAP) is a leading manufacturer and distributor implementing an Electric Resistance Welding ( ERW) production system to produce quality steel pipes. At present, the company has extensive choices of more than 5,000 pipes to offer, which mainly consists of two categories comprising carbon steel pipes, galvanised steel pipes, and cut sheet. Our products are created for multifunctional uses in various kinds of construction; namely, transportation infrastructure, airports, warehouses, and high-rise buildings together with systems; such as, fire prevention systems, irrigation, and sanitary systems.
To date, the company has received several certified standards; namely, ISO 14001 Environmental Management System Use from TUV NORD (Thailand) Ltd., ISO/IEC 17025, and ISO 9000. This have proven PAP moves forward on its resolution ‘The essence of our management lies in integrity, transparency, and governance.’
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โทร: 02-679-9000
E-Mail: Nara.Sri@pacificpipe.co.th
https://www.pacificpipe.co.th/