Ms. Sunee Seripanu, Chief Executive Officer stated that "In Q1 2017, the Company's sales revenue continued to grow at 6.6% compared to the same period last year despite softening spending appetite in relation to Q4 2016. The higher sales revenue in Q1 2017 were mainly driven by increasing top-wear sales, promotional campaigns, and last year sales network expansion whereas the same-store sales grew by 0.4% from the same period last year. At the end of Q1 2017, MC distributed through 883 outlets, decreasing by 14 outlets from the end of 2016. Domestic points of sales declined by 4 outlets while the international point of sales declined by 10 outlets due to the international dealership reprogram that focuses on the resource allocation for customer base build up and effective and efficient brand building."
"MC continued to launch new design and modern look top wears, reflecting consumer's lifestyle trend. In Q1 2017, the Company offered our customers the promotional campaigns that were not only worthy but also provided enjoyable shopping experience at our own stores and online channel. For the new lifestyle products which were launched at the end of last year, i.e., "UP" activewear and "M&C" skin care products were well responded by the customers."
Mr. Bundit Praditsuktavorn, Chief Financial Officer added "In Q1 2017, the Company reported the net profit of THB 232 mn, surging by 14.5% from the same period last year thanks to the growth of sales revenue and the effective cost management. Overall gross profit margin slightly declined from 51.8% in Q1 2016 to 51.1% in Q1 2017 due to promotional campaigns designed to stimulate customer spending while the ratio of SG&A expenses to total sales revenue dropped to 31.9% from 32.7% in the same period last year. Besides, inventory management has improved consecutively. Finished goods inventory days were at 9.1 months at the end of Q1 2017 compared to 12.1 months at the end of 2016."
Ms. Sunee Seripanu, Chief Executive Officer mentioned about the business plan that "For the remained quarters of 2017, the Company plans to continuously develop new collections and product lines to serve the customer demand and lifestyle. In Q2 2017, in addition to the Hawaiian shirt collection which is in great demand of the customers, the Company is introducing "MC MOVE Denim", the new Mc jeans collection with the innovative denim fabric that contains Lycra T400 fiber that allow better stretching and movement than typical models. This collection is perfect for all movement activities with the functions that suitable for various lifestyles. Additionally, the new collection of "UP" activewear also meets the needs of customers who love exercising. For M&C skin care products, we will introduce the new production lines, including aromatic soap bar, talcum powder, and perfume which on top of the body lotion and shower gel that already distributed in our free-standing shops and www.mcshop.com. Furthermore, we plan to open the pop-up stores for skin care product distribution in the leading department stores soon."
Mr. Bundit Praditsuktavorn, Chief Financial Officer added that "The Company continues to focus on growing sales revenue and net profit through opening 20-25 additional outlets and introducing additional skin care products in the second half of the year. Given the sluggish consumption in Q1 2017, we expect sales revenue to grow approximately 10%, down from the previous estimate of 12%-15%. However, we expect to see the lower percentage of selling and administrative expenses to sales revenue thanks to increasing sales revenue and the effective cost control. In Q1 2017, the Company successfully combined two jeans production factories in Bangkok to reduce production cost and expense as well as to have better effective cost management."
"For watch business, Time Deco Corporation Limited ("TDC"), 51% subsidiary of the Company, has determined the sales strategy to focus on product type and brand management to match its distribution channels. After TDC relocated its office to be in the same area of MC's, there will be more cross-promotions and effective operating expense management from shared service utilization."