FINANCIAL INSIGHTS
from the audited financial report of Concordia Public Company Limited
[For simplification, FY 2022-23 will be referred to as 2023, and FY 2023-24 as 2024.]
(1) FINANCIAL PERFORMANCE
Revenue Growth: Revenue increased to MMK 17,598 million in 2024 from MMK 15,781 million in 2023, driven by growth in office automation (OA) and engineering (ENG) segments.
Gross Profit Margin: Improved gross profit margin at MMK 8,465 million (2024) compared to MMK 7,184 million (2023).
Net Profit: Net profit surged to MMK 2,345 million from MMK 464 million, reflecting improved operational efficiency and other income gains.
(2) FINANCIAL POSITION
Assets: Total assets grew to MMK 24,235 million in 2024 from MMK 20,002 million in 2023.
Equity: Equity rose to MMK 16,892 million, driven by retained earnings and bonus share issuance.
Liabilities: Total liabilities rose to MMK 7,343 million in 2024 from MMK 5,421 million in 2023, driven by a sharp increase in trade and other payables, despite a significant reduction in borrowings.
(3) CASHFLOW DYNAMICS
Cash Flow Summary – FY 2023-24:
The year opened with MMK 930 million in cash. Operating activities generated a strong inflow of MMK 3,086 million. After moderate investing outflows of MMK 698 million and significant financing outflows of MMK 1,510 million, the company closed with MMK 1,808 million in cash. — an overall net increase of MMK 878 million.
Positive Trends:
• Revenue Growth: Revenue increased by MMK 1,817 million (+11.52%) from MMK 15,781 million (2023) to MMK 17,598 million (2024), indicating strong cash inflows from operations.
• Gross Profit Margin Improvement: The gross profit margin increased by MMK 1,281 million (+17.83%) to MMK 8,465 million in 2024, indicating better cost control and profitability.
• Net Profit Surge: Net profit grew by MMK 1,881 million (+405.39%) from MMK 464 million to MMK 2,345 million, reflecting enhanced cash generation from operational efficiency.
• Borrowings Reduction: Short-term liabilities were reduced by MMK 1,554 million (-84.81%) from MMK 1,832 million to MMK 278 million, significantly decreasing interest burden and freeing future cash flows.
Potential Concerns:
• Increase in Trade Receivables: Trade receivables rose by MMK 1,870 million, indicating potential delays in customer payments and stressing operational cash flow.
• Inventory Growth: Inventory increased by MMK 951 million, potentially tying up cash unless inventory turnover is efficiently managed.
• Asset Investments: Cash outflows of MMK 741 million for new asset additions signal capital expenditures, which enhance future growth but reduce current cash reserves.
(4) REVENUE COMPOSITION
Office Automation: Increase to MMK 3,806 million from MMK 3,019 million.
Medical Equipment: Largest contributor to revenue at MMK 11,266 million in 2024.
Engineering: Significant growth to MMK 2,820 million from MMK 2,032 million.
(5) KEY OPERATIONAL CHANGES
• Bonus Share Issuance: Issued 399,500 shares by capitalizing MMK 3,995 million from retained earnings.
• Depreciation and Asset Additions: Depreciation and amortization for Assets was MMK 546 million in 2024, with new asset additions of MMK 741 million for PPE.
(6) COMPLIANCE AND INTERNAL CONTROL
• Compliance: Financial statements comply with Myanmar Financial Reporting Standards (MFRS) and Myanmar Companies Law.
• Internal Control: Auditor’s report noted no significant deficiencies in internal control processes.
(7) FINANCIAL RISK MANAGEMENT
• Foreign Exchange Risk: Not actively hedged but monitored.
• Liquidity Management: Sufficient bank balances are maintained to mitigate cash flow fluctuations.
• Market Risk: Interest rate risk considered minimal due to limited interest-bearing assets.
(8) EVENT AFTER REPORTING PERIOD AND FUTURE DEVELOPMENT
• Additional Bonus Share Issuance: Approved issuance of MMK 5,000 million in bonus shares to capitalize retained earnings.
• IPO Plan: Company is in the process of listing on the Yangon Stock Exchange.