As "MC Group" (MC) continues to enhance its cost management efficiency in its fight against COVID-19 crisis, its operating results from Q2/2022 (Oct - Dec 2021) proved strong with net profit soaring above 230 million baht and sales revenue nearing 1 billion baht. In pursuit of its goal to raise sales amount per bill, MC Group plans to urgently revamp its outlets, boost product diversity, and attract shopping travelers. It will also conduct proactive marketing and impressive promotions. CEO of MC Group assures that MC Group sales and net profit in fiscal year 2022 will continue to grow.
Mr. James Richard Amatavivadhana, CEO of MC Group Public Company Limited or MC, says about MC Group operating results from the second quarter of fiscal year 2022 (Oct - Dec 2021) that Thailand's economy between October and December 2021 was fragile on the overall due to COVID-19 impacts as well as concerns about rising living expenses and commodity prices. The government, during the quarter, in fact had tried to stimulate purchasing power through various measures such as Rao Chana (cash-handout) and Half-Half co-payment scheme. However, in spite of such economic climate, MC Group recorded the net profit of 231 million baht thanks to increasingly better cost control/management. The amount of its net profit marked an increase both on the quarter-over-quarter basis and the year-over-year basis.
MC Group's sales revenue in the quarter stood at 995 million baht, decreasing by 12 per cent from the same period a year earlier, because its offline shops - which accounted for 90 per cent of its sales - were affected by COVID-19 outbreak. Consumers were temporarily worried about variants Delta and Omicron. Although online channels were available, they could not fully compensate for a drop of sales at offline shops especially at the time consumers' purchasing power had weakened. Of total sales revenue, 609 million baht came from freestanding shops, 251 million baht from department stores, 12 million baht from superstores, and 102 million baht from e-Commerce.
The CEO of MC Group adds that his firm has already modernized its outlets at petrol stations and been in the process of expanding such MC Outlet network. With an emphasis on community zones and routes with high traffic volume, the number of such MC outlets will rise from 55 to 70 by the coming June. Each such outlet features a diverse range of products and offers affordable prices so as to draw in travelers and boost sales amount per bill. The average sales per bill is now around 1,000 baht.
MC Group, in addition, has continued to maximize its cost management efficiency, conduct personalized marketing, and properly manage distribution channels for different periods of time. As a result, its Gross Profit Margin (GP) remained high at 65.1 per cent in the latest quarter - up from 60.5 per cent from the same period a year earlier. Also, its Net Profit Margin (NP) was at 23 per cent - an increase from 19.8 per cent from the same period a year before thanks to efficient management of Selling, General and Administrative Expense (SG&A), which reduced by nearly 10 per cent from the same period a year earlier - to just 370 million baht.
MC Group's financial position is strong. As of 31 December 2021, its cash and short-term investments totaled 1,997 million baht. It also had zero interest bearing debt. MC Group therefore is well ready to explore opportunities to enhance its businesses, build solid growth, and drive up its revenue and net profit for fiscal year 2022 in line with its plan for continued growth