Our TRADING BUY stands, in anticipation of the YoY earnings rise in 4Q22 assuming the drop in raw material costs in 2H22.
Disappointing results as anticipated
TFM posted a net profit for 1Q22 of only Bt1m, down 98% YoY and 97% QoQ. Excluding extra items in 1Q22—Bt1m in net FX gain and Bt5m in impairment losses on trade/other receivables—core profit was Bt5m, down 89% YoY and 83% QoQ. Net and core profits were consistent with our estimates. Sales, gross profit, GM and after-tax profit were in line with our model. GM of 7% in 1Q22 was close to our 6.8% estimate and much lower than 11.2% in 1Q21 and 9.4% in 4Q21.