CIVIL has announced its Q2/2024 financial results, reporting total revenue of 1.278 billion baht, a 62% increase in net profit driven by sales of construction materials, new project revenues, and effective cost management, showcasing a gross profit margin of 9.3% for the first half of the year. The company is ramping up its efforts to recognize revenue from ongoing construction projects and is increasing opportunities to bid for large-scale government projects to continuously strengthen its backlog.

Mr. Piyadit Asawasirisuk, CEO of Civil Engineering Public Company Limited (CIVIL), a leading comprehensive construction company in Thailand, revealed that for Q2/2024, the company achieved total revenue of 1.278 billion baht, up from 1.171 billion baht in the same period last year, an increase of 107 million baht or 9%. The net profit was 21 million baht, up from 13 million baht in the same period last year, an increase of 8 million baht or 62%.

The improvement in both revenue and profit for Q2/2024 compared to the same period last year is attributed to increased revenue from construction material sales, as well as the company’s ability to grow its construction business by gradually recognizing revenue from new projects. Additionally, the company benefited from cost management efficiencies and increased revenue from construction compensation (Escalation Factor or K).

In the first half of the year, the company reported total revenue of 2.308 billion baht, down from 2.618 billion baht in the same period last year, with a net profit of 46 million baht, down from 61 million baht in the same period last year. This decline is due to restrictions on the duration of construction operations for large projects in accordance with government safety measures, as well as some projects being in lengthy construction phases before revenue recognition.

Despite this, the company has maintained a good level of profitability, with a gross profit margin of 9.3% in the first half of 2024, up from 8.5% in the same period last year, due to effective expense management in small construction projects and revenue recognition from K in railway and road projects.

“Overall, the construction contracting industry is expected to grow, although there are still concerns regarding stable public investment due to delays in the 2024 budget bill, which affects the overall value of public construction projects in the first half of the year,” Mr. Piyadit stated.

“However, the company continues to operate construction projects and recognize revenue from its backlog as planned, improving operational efficiency and increasing opportunities to bid for large-scale government construction projects to strengthen the backlog value. The company is also preparing plans to cope with potential external impacts,” Mr. Piyadit added.