Bangkok--13 May--MC GROUP
Amid the challenges of unfavourable economic backdrop, MC GROUP Public Company Limited ("MC") announced Q1 2016 sales revenues of THB 1,144 mn or a 28% boost from the same period last year driven by continuous sales network expansion and the company's strong commitment to enhance efficiency in the supply chain management as well as innovative weekly sales promotion campaign to engage the customers under competitive environment. The company reported the net profit of THB 202 mn, a 4% increase from Q1 2015.
Ms. Sunee Seripanu, Chief Executive Officer said "Sales revenue of the company satisfactorily grew with a 28% boost compared to the same period last year thanks to the continuous improvement in channel management mainly store expansion, enlargement, renovation activities in good performance stores and the closure of non-performance stores. We also focus on higher efficiency in the supply chain management includes product allocation, warehouse and logistics management. The weekly marketing promotional campaigns launched particularly at our own free-standing shops contributed largely to the record same-store-sales growth of 28% in Q1 2016. At the end of March 2016, we have 863 outlets, a slight drop from the end of 2015 by 3 outlets. The domestic points of sales declined by 4 outlets whilst the international point of sales added up by 1 outlet in Myanmar."
Dr. Narumol Sinhaseni, Senior Executive Vice President of Finance and Business Support added that the weekly promotional campaigns were the Company's strategy to simulate the consumer spending and return the benefits to the customers as well as to reduce the high inventory from last year. Although Q1 2016 gross profit margin was inevitably lower to 51.8% from 56.1% of the same period last year, the Company's inventory conversion period satisfactorily improved from the end of 2015.
Also due to high growth in sales outpaced the SG&A expenses, the ratio of SG&A expenses to total sales improved from 35.1% to 32.5% compare to the same period last year. MC reported THB 202 mn of net profit, a 4% increase from Q1 2015."
Ms. Sunee Seripanu, Chief Executive Officer also added that "This year, MC remains to promote the marketing activities mainly through our own free standing shops. We will constantly create exciting and worthy marketing campaigns for our customers. In terms of products, we will provide more innovative top wears to the market and develop new products to serve the variety of consumer lifestyles for all ages. The company also aims to continuously improve our supply chain efficiency from upstream to downstream to achieve better performance."