SABINA revealed Q3/ 2021 earnings (July - September) with the total revenue of 547.2 million baht, decreased by 13.6% from Q2/ 2021 (QoQ), and by 32.9% from Q3/2020 (YoY). The net profit was at 55.2 million baht, decreased by 12% (QoQ) and by 35.7% (YoY). The decrease came from the second lockdown impact due to the more drastic pandemic of Covid-19. Despite the decrease of total revenue and net profit, the results were better than expected, particularly when compared to the first lockdown in Q2/ 2020 with the rise of Gross Profit Margin from 38.8% in Q2/2020 to 50.4% in Q3/2021.
Mr. Bunchai Panturaumporn, CEO of Sabina Public Company Limited, or SABINA, a manufacturer and distributor of lingerie under the brand "SABINA" disclosed that despite the decrease of Q3/ 2021 earnings in terms of total revenue and net profit from the previous period (QoQ) and the same period of last year (YoY), the Company could maintain its profit amid challenging situation of risks and it was at satisfactory level. In quarter 3 of this year, the pandemic of Covid-19 was so drastic that the government had to announce the second lockdown, leading to falls in department store sales due to the temporary closing following the government's measure to control the pandemic. However, to compare the first lockdown in quarter 2 of 2020 with the latest lockdown, admittedly, SABINA's second lockdown management was more efficient.
"The latest Covid-19 pandemic posted impacts on retail sales channels whether through SABINA's, shops, and SABINA counters in department stores, including revenues from export of "SABINA" brand to CLMV countries (Cambodia, Laos, Myanmar, and Vietnam). The revenue from the OEM to produce products for clients in Europe was stable and the non-store retailing (NSR) could reach its growth target. However, through the Company's cost management strategy, the Gross Profit Margin was maintained at 50.4%, higher than the lockdown period in quarter 2 of 2020 when the GPM was at 38.8%", said Mr. Bunchai.
The crucial supporting factor which helped the Company's to achieve better-than-expected Q3 operating results was SABINA's marketing strategy opening for more sales opportunities after the government's lockdown ease at the beginning of September. The Company had prepared sales promotion campaigns to stimulate sales volume prior to the ease, and they were immediately implemented right after the ease. Those campaigns, particularly, 9.9 sales promotion campaign on leading online shopping platforms, together with consumers' repressed demand caused by the lockdown, had increased SABINA's sales volume to a satisfactory level through shops and online channels in September which was the last month of quarter 3.
SABINA CEO added that the direction of the last quarter of this year, the economic activities will resume after the country opening on November 1. The year-end period is the spending and festival period with a 11.11 shopping campaign, the biggest shopping campaign of the year. The campaign helped SABINA's products to be listed on the top sales rank of Lazada platform. Thus, with the control of Covid-19 pandemic after the country opening, it is believed that the economic situation will be improved. With confidence, the operating results in 2021 can be maintained while the baht appreciation, another supportive factor of SABINA, is lowering the OEM product cost and helping the gross profit margin management of this year to be more efficient.