The Thai Optical Group (TOG) posted overall revenues of 1,850 million baht (€50.9m-$61.5m) for its financial year ended Dec. 31, down by 9 percent from the previous year. Sales of lenses and services to external customers decreased by 8 percent year-on-year to THB 1,838 million (€50.5m-$61.2m), with sales of standard organic lenses accounting for most of the decline as they dropped by 27 percent to THB 483 million (€13.3m-$16.1m). On the other hand, sales of higher value-added products such as high-index, high-resistance and photochromic lenses increased by 9.6 percent to THB 570 million (€15.7m-$19.0m) last year. Aggregated with sales of prescription lenses, they come to represent 66 percent of the group’s revenues, while the share of standard organic lenses fell by 7 percentage points to 26 percent, resulting in an improved product mix for the group.
In terms of regional performance, TOG revenues’ decrease in Australia and Asia-Pacific was limited to 1.7 percent year-on-year with aggregated sales of THB 928 million (€25.5m-$30.9m) in 2020 for these two markets that weight about half of the group’s business. Sales in the Americas, which consist mostly of bulk finished and semi-finished lenses, jumped by 60 percent to THB 247 million (€6.8m-$8.2m) on improved supply chain efficencies and delivery services to the existing customer base, according to the company.
European revenues, which are more RX lenses-driven, plunged by 32 percent to THB 511 million (€14.0m-$17.0m) in 2020, as compared with 2019. TOG highlighted the impact of the Covid-19 pandemic and related lockdowns in its results’ commentaries but also said that sales started to recover strongly in Q4. As previously reported, the company built a new distribution center in Poland in the second half of last year, which will be operational from March 1.
The reduction in selling and administrative expenses only partially offset the drop in revenues, leading the group to post a 48 percent year-on-year decrease in net profit to THB 69 million (€1.9m-$2.3m) in 2020.