Bangkok--27 Feb--MC GROUP
MC GROUP Public Company Limited ("MC") announced its 2016 sales revenue of THB 4,442 mn, a 14.0% growth from 2015, which is in-line with MC's revenue estimation of 15.0%. Key drivers to this growth were more diverse offering in apparel products, sales promotional campaigns throughout the year as well as channel expansion during the year. With regard to profitability, MC recorded a net profit of THB 843 mn or 15.1% increase from 2015. For Q4 2016, MC set a new quarterly sales record of THB 1,411 mn or 9.4% rise from Q4 2015. Net profit rose by 27.0% from Q4 2015 to THB 317 mn thanks to solid sales growth and effective cost management. MC reached a resolution to pay additional dividend of THB 400 mn at THB 0.50 per share, adding up to a total annual dividend payment of THB 0.90 per share from 2016 performance.
Ms. Sunee Seripanu, Chief Executive Officer said "Another challenging year for retail business passed by as economic conditions slowly recovered while consumers are still prudent in spending. Under this situation, MC put an emphasis on same-store-sales growth as a major catalyst for revenue and profit expansion and managed to hit 11.0% same-store-sales growth from broadening apparel offering especially top wears as well as continuously executed sales promotional campaigns that were appealing and offered value-for-money to consumers on a weekly basis. Moreover, effective sales channel management and supply chain management resulted in a record high in sales revenue of THB 4,442 mn or a 14.0% increase from 2015, in line with the sales revenue target of 15.0%."
"In 2016, the Company promoted variety of apparel offering with the focus on top wears that match lifestyles of consumers through its modern designs and special features such as reflective t-shirts and t-shirt with Dri-Balance technology. Denim wears were also consistently developed; for example, a new collection of selvedge denim or denim with red tabs, denim trucker jacket for ladies using Kaihara fabrics. Besides, new items were launched under lifestyle product group e.g. new travel luggage and backpacks. During Q4 2016, MC also premiered two lifestyle products which are activewear under "UP" brand and skin care products like body lotion and shower gel under "M&C" brand."
"The fourth quarter of 2016 marked the time the Company hit a record of highest sales revenue of THB 1,411 mn or up 9.4% from the same quarter in 2015. Same-store-sales growth edged up 4.1% from the same quarter last year. Many factors were accounted for this growth including seasonal effects, higher top wears variety, sales promotional activities and sales network expansion during last year."
"At the end of 2016, MC had a total of 897 points of sales, adding 31 locations from the year before. Out of all points of sales, 303 were free-standing shops, 563 were modern trade, 6 were mobile units and 25 were overseas in Myanmar, Laos, Vietnam and Cambodia."
Mr. Bundit Praditsuktavorn, Chief Financial Officer added "In 2016, the Company experienced a decline in gross profit margin from 56.1% in 2015 to 54.7% as a result of sales promotions to boost consumer demand, giving back to consumers and an effort to optimize inventories. Nevertheless, gross profit margin showed an improvement since Q2 2016 thanks to proper adjustments in sales campaigns and an effective cost control. Gross profit margin for Q4 2016 improved to 57.1% from 55.0% in Q3 2016 and 54.1% in Q4 2015."
"For Q4 2016, MC recorded a net profit of THB 317 mn, a 27.0% boost from Q4 2015 thanks to strong sales revenue growth as well as a successful cost management. Consequently, the Company enjoyed a net profit of THB 843 mn – increasing 15.1% from 2015. The Company thereby resolved to approve additional dividend payment for the performance of the second half 2016 at THB 0.50 per share which amounts to THB 400 mn. Together with the interim payment, full year dividend will amount to THB 0.90 per share."
Ms. Sunee Seripanu, Chief Executive Officer mentioned further about the business plan that "For the year 2017, we still focus on enhancing sales revenue and profitability. We expected that sales revenue will grow at 12%-15% mainly from growth in same-store sales while the key products are still denim wears that MC has an expertise and a market leader position. In parallel, new groups of lifestyle products will be developed and introduced. MC planned to leverage on its free-standing shops, regional business expansion through sales agents, additional market study for new territories as well as online channel development to help generate sales by accommodating customers under changing trends in their lifestyles."
Mr. Bundit Praditsuktavorn, Chief Financial Officer added "The Company expected its gross profit margin for 2017 to be in line with that of 2016. MC expected to spend THB 70 mn of CAPEX in sales network expansion of 20-25 locations, online channel development and customer relationship management system (CRM). MC expected that at the end of 2017, overall finished goods inventory turnover will come down to 10.5 months."
"For watch business operated by Time Deco Corporation Limited "TDC", a subsidiary that the Company owns 51% shares, consumers can expect to welcome more new products and more attractive sales campaigns through TDC points of sales together with www.mcshop.com, our online distribution channel. This helps ensure that the outlook for watch business performance in 2017 is quite positive."
"MC set its ex-dividend date on 27 April 2017 and will publish the list of shareholders who are entitled to the dividend payment on 2 May 2017. Book closing date will be on 3 May 2017 and dividend payment is scheduled on 19 May 2017."