Mc Group in the year of 65, holding 2 billion baht in cash, creating business opportunities, revealing that Mc Outlet increases sales of fashion products to reach customers
Date 08 March 2022 time 1:02
“MC” continues to penetrate the business according to the main strategic plan, holding almost 2 billion baht in cash on hand, creating business opportunities Confident that the second half of the year’s performance will continue to grow, expecting a full-year profit to grow at double digits
Mr. Piya Oranriksupak Chief Accounting and Financial Officer, MC Group Public Company Limited or MC, a retail business organization Fashion and lifestyle products category “Mac Jeans” revealed at Opportunity Day that the trend of the company’s operating results for the second half of 2022 (Jan.-June 2022) has a chance to grow continuously from the first half of the year. And it is expected that the whole year the company’s net profit will grow in double digits or at least 10%, while sales revenue has increased slightly or close to the previous year with sales revenue of 3,248.82 million baht.
“Economic overview The retail and consumption industries are affected by the COVID-19 outbreak. But the company can still grow well. Especially for the second quarter, there was a net profit of 230 million baht, an increase of 847% from the previous quarter with a net profit of 23.59 million baht and a net profit of 254 million baht for the half-year period.” Mr Piya said
Mr. Piya said that business operations in the second half of the year The company continues to move forward with its main strategies, such as expanding Mc Outlet branches within its gas stations. PTT Oil and Retail Business Public Company Limited (OR) will complete 70 branches, with 11 more branches will be opened from the end of the first half of the year, 59 branches have been opened, including other types of store expansions. It will invest approximately 45-50 million baht and operate in parallel with the expansion of services and sales channels through both offline and online platforms.
However, Mc Outlet is considered a sales channel. that allows the company to reach more target customers with higher sales and higher profit margins because of economy of scale. Sales from Mc outlet are expected to increase to 10% from 8% of total sales and aims to expand to 100 outlets in in the future to become another important strategic store of the company in different regions of the country
In addition, due to the company’s strategic focus on the matter of “brand” rather than the use of promotional strategies. coupled with reducing costs all around As a result, the gross profit margin rose to a new record. In the second quarter, the gross profit margin was 65.01%, an increase of 60.5% from the same period last year, while the first half was at 64%, an increase from the same period. last year, which was at 60.4%. The company will maintain the gross profit margin at this level in the second half of the year.
for inventory management The company aims to reduce the inventory value to 1,000 million baht at the end of the fiscal year 2022 from 1,278 million baht at the end of the previous year. Mc Outlet is one of the important sales channels for effective inventory management. and support to increase profits which also contributes to higher gross margins
Mr. Piya added that on March 10, MC shareholders will receive a dividend after the Board of Directors approves an interim dividend of 0.32 baht per share, representing a payment rate of 100% of net profit and shareholders. have a chance to receive higher dividends After the board approves the repurchase of 8 million shares or 1% of the paid-up shares to reduce the registered capital after the expiration of the period As a result of the capital reduction, EPS will increase, which will increase by the same amount as the number of shares that have been reduced and upon completion. The company will have a registered capital of 792 million shares at a par value (par) 0.50 baht or a registered capital of 396 million baht from 800 million shares or 400 million baht.
Mr. Piya concluded that with a strong financial position with more than 1,997 million baht in cash on hand and no debt This gives the company flexibility and flexibility. giving opportunities to expand investments in new businesses to come and support the company’s core business Or expanding business in the digital world in the future such as NFT Marketplace platform because MC itself is already working on fashion. In the past, the company has joined hands with Class Cafe to develop Metaverse under the name “Velaverse”, for example, and in the future may see Jeans Street in Metaverse as well.