Mr. James Richard Amatavivadhana, CEO of MC Group Public Company Limited (SET: MC) that retails fashion / lifestyle products under “Mc Jeans” brand, reveals that operating results from fiscal or accounting year 2022 (1 July 2021 – 30 June 2022) delivered the net profit of 486 million baht. The amount marked a nine-per-cent increase from the previous year, which recorded the net profit of 446 million baht. Gross Profit Margin also jumped to 16.5 per cent, up from 13.7 per cent a year earlier, even though effective tax rate rose to 18 per cent from 14.9 per cent a year before.
MC Group successfully maintained its profitability with its Gross Profit Margin rising by 5.1 per cent to 64.7 per cent in FY2022, up from 59.61 per cent a year earlier. Thanks to properly adjusted marketing strategy, great product mix, efficient distribution-channel management, and comprehensive cost control including hedging against volatile raw-material prices, the company achieved a higher Gross Profit Margin in spite of falling sales revenue.
Mr. James Richard continues that in FY2022, MC Group’s total sales revenue was 2,923 million baht. The amount dropped by 9.2 per cent from the same period the previous year mainly because COVID-19 outbreak still affected offline distribution. To date, offline channels have been the company’s major distribution channels. By category, freestanding shops generated 1,792-million-baht sales, department stores recorded 664-million-baht sales, and superstores registering 19-million-baht sales. E-commerce or online distribution, meanwhile, was responsible for 303-million-baht sales.
“In the wake of COVID-19 pandemic and Russia – Ukraine war that has pushed up oil prices, Thailand’s economy, retail industry, and consumption have faced various ramifications. However, we have managed to achieve a robust growth. Guided by our strategy, we have arranged a great product Mix, launched MY MC MY WAY campaign, and accomplished the plan to open 72 Mc outlets. MC Group’s equity, as a result, rose to 3,675 million baht from 3,603 million baht a year before. Our ROE or Return on Equity also soared to 13.4 per cent from 12.4 per cent a year earlier. We have the policy to pay dividends to shareholders on a continued basis,” CEO of MC Group says.
On financial position as of 30 June 2022, MC Group has not taken any loan from financial institutes. It therefore has not been affected by rising interest rate. Moreover, the company’s cash or equivalents stood at 1,995 million baht – up from 1,864 million baht a year before. Inventory management also met its key target with inventories worth 1,200 million baht – down from 1,250 million baht a year earlier.
Mr. James Richard concludes that in 2022/2023 period, business prospects are good because Thailand has already re-opened to international visitors and consumers’ spending has apparently been on the rise. The last quarter of FY2022 shows a significant increase of consumers’ spending. When coupled with tourist arrivals, Thailand’s gross domestic product looks set to soar. MC GROUP therefore expects to achieve double-digit growth rate in its new fiscal year.