Bangkok--17 Aug--MC Group
MC GROUP Public Company Limited (“MC”) reported the Q2-2015 sales revenue of THB 908 mn, indicating a business growth of 11% compared to the same period last year. This growth was fueled by an increasing number of distribution outlets together with promotional activities that were well received by consumers. The Company could retain net profit for this quarter at the level close to net profit of the same quarter last year at THB 174 mn. For the first half of the year, the Company reported total sales revenue of THB 1,800 mn and net profit of THB 370 mn, indicating a growth of 8% and -3% respectively compared to the same period last year. Together with this business performance announcement, the Company announced the interim dividend payment of THB 0.35 / share, or a total dividend of THB 280 million.
Dr. Narumol Singhaseni; Senior Executive Vice President – Finance and Business Support, said “The Company’s sales revenue still continues to grow despite of the fact that Thailand’s economy has not recovered clearly. The sales growth for the first six months of this year was fueled by an expansion of distribution outlets to a total number of 839 domestic and overseas outlets as well as above-expectation consumer responses to the promotional activities that the Company offered to consumers in early May.
The Company reported the gross margin at 56% for the first six months of 2015, increasing from 54% of the same period last year. The improvement in gross margin was driven by the Company’s ability to control production cost more efficiently and an increase in sales contribution from the Company-owned retail outlets. Nevertheless, As the Company is expanding its team and distribution network to accommodate future growth during the time when the sluggish economy still continues and the recovery of private sector’s consumptions is unclear, the Company’s net profit margin was negatively impacted.”
Ms Sunee Seripanu; the Chief Executive Officer, said “To increase consumers’ store visit thus will enhance store productivity and same-store-sales in the future, the Company is determined to develop and offer new products to add more product variety for the store. This can be evidenced from our success in the launch of new luggage end of the first quarter of this year and the addition of more tops which we plan to offer more for the rest of the year. Not only tops nicely match with jeans, but also have higher purchasing frequency compared to jeans.
Moreover, the expansion of distribution outlets is still a key strategy to strengthen the business. This includes an addition of the Company-owned outlets, an expansion of the new brand “mc mc” along with PTT gas stations, an expansion of consumer base in Burma, and an expansion into the new market. In the second quarter this year, the Company has signed a contract to appoint a distributor for Cambodia market.
Nevertheless, as the sluggish economy is likely to continue, consumers are prone to decrease their spending, causing the Company to adjust its sales growth target of 2015 to 10-15% per annum, compared to the previous target of 15-20% per annum.”
The ex-dividend date (XD) will be on 26 August 2015 and the record date determining the rights of shareholders to receive dividend payment will be on 28 August 2015. The name list of shareholders will be determined on 31 August 2015 and the dividend will be payable on 11 September 2015.