Bangkok--13 Nov--MC GROUP
MC GROUP Public Company Limited ("MC") reported a sales revenue of THB 2,606 mn, or a sales growth of 8% thanks to a higher number of points of sales as well as newly-added product lines offered to promote product variety and meet the current lifestyles of consumers. Nevertheless, challenging economic situation continued to weigh on overall retail business. MC retained a net profit of THB 482 mn and experienced a drop of 7% in net profit for the first 9 months of 2015. For the third quarter, MC realizes a sales revenue of THB 806 mn, equivalent to 7% growth while net profit dropped 17% to THB 113 mn.
Dr. Narumol Singhaseni, Senior Executive Vice President – Finance and Business Support, said "The key factor that fueled sales growth in this quarter was from sales revenue made through newly-opened distribution outlets which, at the end of the third quarter, we had a total of 857 points of sales domestically and internationally. MC also recently opened its first shop in Phnom Penh, Cambodia. Additionally, sales growth was also driven by the introduction of McT at the end of August as a new product line for top wears.
For the third quarter, MC managed to maintain its gross profit at a satisfactory level of 59% due mainly to better production cost control and higher production efficiency. However, larger human capital to support future business growth as well as rising costs from other selling, general and administrative expenses from sales network expansion while sales revenue was still curbed by grim economic condition negatively impacted MC's profitability."
Ms Sunee Seripanu, CEO added "Even though overall economy still shows no real sign of recovery, MC is progressing its business as previously planned and the expansion plan is in place for the business to grow consistently in the future. In late August, MC signed a joint venture agreement with Phetkasem Holding Co., Ltd, an expert in textile industry, to introduce top wear line catering to all lifestyles of consumers with affordable prices under the brand McT. This move is in accordance with its growth strategy to promote product variety and complement to growing high potential jeanswear business where it is our stronghold. This should attract more customers store visits and positively contribute to our sales growth in the future.
With regard to the development of IT system (ERP), the team already completed the new system setups and it is currently under UAT (User Acceptance Testing) phase. The new system is expected to go live for users in January 2016"