Thai EMS Firm SVI Reports 11% Revenue Decline for 3Q

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Thailand-based EMS firm SVI Public Co. Ltd has reported consolidated revenues of THB2.365 billion ($65.76 million) in the third quarter, up by 2% from the previous quarter, mainly driven by demand for IP video, professional audio, and automotive products. This quarter's revenue however was down by 11% year-on-year due to the manufacturing disruption caused by a fire in November of last year, which required the company to methodically re-qualify each product and customer through the product approval process with each customer. SVI's capacity has been gradually restored and is now back to the pre-fire level. The utilization rate continues to increase and shall be fully optimized by next year.

Total consolidated gross profit for the quarter was THB333 million ($10.16 million) or 14% of revenue, up by 3% from last year, mainly on lower material costs driven by the baht depreciation. As compared to the previous quarter, gross profit increased by 10% mainly due to efficiency improvements in manufacturing costs.

Consolidated net profit for the quarter totaled THB145 million ($4.03 million), a decrease of THB294 million ($8.17 million) from last year, due to less receipts of fire and flood-damage compensation paid by insurance companies. The normalized net profit, adjusting for insurance proceeds and additional expenses related to fire recovery, represent a net profit of THB221 million ($6.14 million) or 9% of revenue.