Mr. Suwin Kraibhubes, Chief Executive Officer of Beauty Community Public Company Limited (BEAUTY) said that the impact from Covid-19 pandemic would still pressure domestic sales in 4Q21, but expected performance to improve from the reopening to stimulate the Thai economy as BEAUTY’s business is entering its peak season.
BEAUTY reported a net loss of 22.02 million baht in the third quarter of 2021, improved by 3.23% from the same period of last year and 37.4% from a net loss of 35.17 million baht in the previous quarter. Meanwhile, the company recorded a better performance for its nine-month period with a net loss of 72.33 million baht, compared to a loss of 123 million baht in the same period of last year.
Total revenues for the 3Q21 were 75.37 million baht, decreased by 61.05% YoY and 7.80% QoQ. The first 9 month of 2021 was 294.52 million baht, decreased by 50.31% YoY. Revenue structure came mainly from the Retail shop 42.39%, Oversea 36.27%, E-commerce 11.47%, Modern Trade 3.90%, General Trade 2.15% and Other revenue 3.82%. The same store sales growth (SSSG) for the first 9 months of 2021 declined by 18.85%.
Selling expenses for 3Q21 was 35.97 million baht, decreased by 59.47% YoY and 20.93% QoQ. The first 9 month of 2021 was 142.22 million baht, decreased by 55.16% YoY. The decline in selling expenses was mainly due to the adjustment of the company’s cost control on every operational process. Focusing on management and cost control according to the (Cost Saving Program), such as expenses related to advertising, promotion, fixed costs (by closing non performing branches).
Administrative expenses in 3Q21 was 25.64 million baht, decreased by 20.61% YoY and 10.53% QoQ. The first 9 month of 2021 was 83.97 million baht, decreased by 34.89% YoY. Administrative expenses decreased mainly from the company having a business restructuring in order to increase competitiveness and reduce the future cost, including expenses control in accordance with the Cost Saving Program to achieve the highest efficiency. This also includes management restructuring to suit the current business model and economic situation.
BEAUTY expected to see some positive trends with Thailand gradually opening up its border to tourism in order to stimulate the economy during the year-end high season period. As for the Chinese market, the company expected a slow recovery especially during the 11.11 grand promotion seasons and in response to its new “Product License” sale model which improves product development process and the overall business management in China.
Mr. Kraibhubes stated that the company will continue to closely monitor the situation. As part of its crisis management plan, the company has introduced Business Re-engineering plan on three fronts comprising: 1) Management Restructuring for increased efficiency 2) Business Remodelling 3) Market Renew by expanding sale channels that have high growth potential and can reach larger customer base that goes beyond the traditional retail shop channel. With these, BEAUTY plans to increase the ratio of the sale revenue generated by the domestic market that is deemed more sustainable and less susceptible to crisis and changes in the longer term. BEAUTY anticipates that with these restructuring strategies, the company’s sale can bounce back quickly once the COVID-19 pandemic gradually subsides. In the meantime, the company will focus on expanding channels with potential growth in order to reach more customer base, not limited to domestic customers. BEAUTY currently has 13 distributors with nationwide sales channels for a total of 16,696 shops.