SABINA Posts 82% Profit Increase as Revenue Moving toward Pre-Covid Level

SABINA reported its Q3 2022 performance showing a total revenue of 781.3 million baht, an increase of 234.1 million baht or 42.8% YoY, while net profit is at 100.2 million baht, an increase of 45 million baht or 81.7%. As regards the operating results for the first nine months of 2022, both total revenue and net profit saw growth with the total revenue at 2,351.6 million baht, a 26.9% YoY increase, while net profit is at 311.1 million baht, a 58.6%. YoY increase. SABINA states that the favorable conditions were the economic recovery which led to a rebound in purchasing power, the upswing in consumer confidence, the marketing activities such as the 9.9 mega shopping campaigns which boosted non-store retailing as well as the retail channel where more people have returned to shop in malls, and overseas customer orders for the OEM channel, while cost control remains efficient. Thanks to all of this, the gross profit margin (GPM) in Q3 2022 is 48.0%. It is anticipated that festive spending in the last quarter, particularly the government’s stimulus measures, will help SABINA break its record of 3,295 million baht of revenue in 2019 prior to the COVID-19 crisis.

Ms. Duangdao Mahanavanont, CEO of Sabina Public Company Limited (SABINA), manufacturer and distributor of SABINA lingerie, disclosed that SABINA’s operating results for Q3 (July-September) and the first nine months (January-September) of 2022 are going according to plan. The factors conducive to the YoY growth in total revenue and net profit are improved consumer spending, increased tourism revenue, including the 9.9 mega shopping campaigns in September where SABINA goods ranked top sales in the fashion category of both Thailand and the Southeast Asian region. Also, owing to efficient cost control, in Q3 2022 SABINA managed to maintain its GPM at 48.0%, reflecting strong profitability.

In the first nine months of 2022, SABINA enjoyed sales growth through all channels, achieving a 38.1% YoY increase in the retail channel, a 9.6% increase in the non-store retailing channel, and a 14.0% increase in the OEM channel. At the same time, SABINA benefited from the Thai baht declining to 38 baht against the US dollar and likely to keep on depreciating for the rest of 2022 well into 2023, raising SABINA’s foreign currency income from OEM service. However, SABINA will continue to keep its finger on the pulse of FX rates by adjusting the strategic plan for FX rate management, balancing imports and exports as well as making the most positive impact for the company.

“SABINA’s sales have bounced back in every channel. We believe that this year, each channel will grow as targeted, driving sales in the last quarter and aiding our attempt to repeat our record high of 3,295 million baht of revenue in 2019 before the COVID-19 crisis, which was approximately a 20% increase from 2022. It’s very probable, though we need to wait and see how some things will turn out in the remaining three months. The first is our sales volume in Q4 2022 assisted by the 11.11 Singles’ Day mega shopping campaign, the largest one of the year. The second is the hopefully higher number of tourists than projected for the tourist season. The last is whether the government will launch any year-end spending stimulus such as the Shop Dee Mee Khuen tax rebate scheme. With the addition of these contributory factors, I believe that SABINA will without doubt reach our goal,” said the CEO of SABINA.