Seems like they are human, after all. But to combine a 7% top...

Seems like they are human, after all.

But to combine a 7% top line expansion with 7% bottom line contraction requires some significant gross margin compression.

By my estimates (which assumes that CoDB increased on pcp by CPI, depreciation increased in line with the depreciable asset base, and unchanged tax rates), it means the Gross Profit Margin must've come in close to 52.5% (see * in chart).

Which is quite a fall in the context of the longer-term GP Margin trend.




And this doesn't feel like the sort of discretionary spend environment in which they will be able to recoup that lost margin through upward flexing of their price lists, so I guess they are just going to have to hang tight and wait for the Thai currency to normalise.

I must say, I'm surprised by the severity of the fall.