TPI Polene posted a normalised profit of THB299m for 1Q12, down 71% YoY, but a marked improvement from a loss of THB105m in 4Q11. The YoY decline was mainly due to gross margin drop from 32.3% to 18.3% due to lower cement and LDPE margins; and a 21% jump in S&A expenses. Cement margin narrowed YoY due to a THB200/t YoY fall in local cement prices.
The QoQ improvement stemmed from 27.5% sales growth as demand for all products recovered from the 4Q1 flooding crisis.
In terms of the cement business, public spending will rise in 2H12, especially from the flood prevention projects as the government budget has already been approved.
