Bangkok--24 Feb--i2C Communications
Lingerie brand Sabina revealed that its business performance in 2019 resulted in total sales worth 3.279 billion baht, of which net profit accounted for 413.2 million baht. These figures signify a 14.3% growth compared to the previous year, while the company's gross profit margin surged to 54.4%.
This positive performance was driven by a strategic change in sales channels to comply with changing consumer behaviour and buying habits, such as preferring to shop online. This change in buying behaviour motivated Sabina to launch a big online campaign as well as participate in the 11.11 and 12.12 shopping festivals hosted in November and December 2019 respectively by large online platforms. Sabine was dubbed the best-selling brand in the shopping festivals. Apart from experiencing online success, the company also developed new lingerie collections to cater to changing demands and requirements of consumers today. Its "Body Bra" series has been the highlight product for 2019.
In line with its stupendous growth last year, Sabina's board of directors also approved dividends of 0.62 baht per share along with an interim dividend payment of 0.57 baht per share, resulting in a total dividend payment of 1.19 baht per share, which accounts for 100% of the net profit.
Mr. Bunchai Punturaumporn, CEO of Sabina Public Co, Ltd (SABINA), the manufacturer and distributor of "Sabina" lingerie products, said the company's performance last year was far better than expected despite the decline in purchasing power impacted by the economic slowdown and a drop in consumer confidence.
Sabina's growth has been further enhanced by several encouraging factors, especially its marketing strategy which is now focusing on the penetration of online markets or non-store retailing (NSR). The company marked a 32.3% growth in online sales last year in comparison to 2018.
"At the end of last year, Priceza studied online sales and found that lingerie was the best-selling product in the fashion category, and that Sabina had earned the highest sales online, especially during the 11.11 and 12.12 shopping festivals held in November and December last year. Sabina also did very well via its retail channels, recording a growth of 3.7% last year with a clear focus on its selling points. Two new Sabina outlets were also opened last year at Central Village and Samyan Mitrtown to cater to strong customer demand and purchasing power in the area, which resulted in satisfactory sales performance," the CEO said.
As for offering consumers new products, Sabina launched the "Body Bra" collection last year, and chose well-known actress Pimchanok "Bifern" Luevisadpaibul as its presenter.
This strapless bra series became a highlight product of last year by not just getting a good response in Thailand, but also doing well in the CLMV (Cambodia, Laos, Myanmar and Vietnam) markets.
In Vietnam, especially, Sabina enjoyed a strong growth of 25.7% last year in comparison to the previous year. However, the company posted a relatively flat sales, with just 0.1% growth for its OEM (original equipment manufacturing) business deals in Europe.
The CEO also said that thanks to the growth in online channels, the company has been able to control its marketing costs and has been managing its stocks more efficiently. Sabina has also been able to control its manufacturing costs, as 37% of its products are now being made in China through sub-contract manufacturing with local factories in the mainland, while 63% of the products are being made in the company's own factories in Thailand.
Apart from controlling and even reducing its manufacturing expenses, the company has also benefited from the appreciation of the Thai currency, which resulted in its gross profit margin to stand at 54.4%. Though Sabina has had no significantly adverse impacts from the ongoing coronavirus (COVID-19) outbreak in China, the company has started sub-contracting factories in Vietnam. The move is aimed at spreading the risk factor as well as becoming a base for the Vietnamese market, which has shown strong growth potential.
Thanks to its positive performance in 2019, the company's board has resolved to provide 0.62 baht per share in dividend plus 0.57 baht per share for the first half of last year, resulting in each share earning 1.19 baht. This accounts for 100% of the net profit. The company will close its share registration book to start accounting for dividend receipt on May 8, while dividends will be disbursed on May 22.