SABINA expects revenue from oversea OEM to overachieve target after receiving benefits from weak baht at 38 baht per US dollar as the influx of orders reflects clients' confidence over production quality standard. The Company continues to maintain its customer base in Europe and UK. It is certain that the growth will come from all distribution channels in the last quarter, both retail channel - expanding in line with customers' spending at department stores, particularly after the opening of Terminal 21 Rama III - and online channel - 11.11 mega campaign and the recent 10.10 Brands Festival campaign of which SABINA swept the highest sales on Shopee online platform.
Ms. Duangdao Mahanavanont, CEO, Sabina Public Company Limited or SABINA, manufacturer and distributor of "SABINA" lingerie said the weak baht at 38 baht per US dollar with possibility to be even weaker due to the appreciation of the US dollar had led OEM sales revenue in Q4/ 2022 to possibly overachieve the target of 20% increase from the same period of last year. Apart from the depreciation of the Thai baht as the Company's revenue received in foreign currencies, there were significant increases of customers' orders from Europe and UK.
"SABINA's traditional business operation of OEM manufacturing and distributing has long been operated before our strategy improvement of brand establishment. That long and continuity of business operation have posted confidence in product quality and services under the standard of SABINA among customers, as well as in manufacturing technology which we learned from customers' requirement to develop variety of innovations. Meanwhile, our responsibility toward the society and the community following the sustainability principle is also the main factor that our oversea customers placing an emphasis upon. Through our strong realization and implementation of the sustainability, we can maintain our oversea customer base firmly. The positive outlook has led SABINA to expand its OEM customers in next year in respond to markets' demand from 10% of the core revenue structure. We believe that this will strengthen quality of SABINA's overall revenue structure", said Ms. Duangdao.
Apart from possible higher-than-expected revenue from OEM in Q4, the retail revenue and Non-Store Retailing revenue (NSR) have shown a sign of increase. The retail revenue is supported by the recovery of consumers' spending, an increase of tourist numbers, as well as the opening of new department stores such as Terminal 21 Rama III in October, driving the revenue to gradually increase. The Non-Store Retailing revenue was driven by the biggest campaign of the year, 11.11 Single's Day in November, when SABINA could receive sales volume from Thailand's and SEA markets. The recent 10.10 Brands Festival Campaign on Shopee platform had led SABINA brand to be the highest sales volume brand. All of these factors will drive SABINA's last quarter to grow in every channel