"James Richard Amatavivadhana", CEO of Mc Group, reveals fiscal year 2021/2022 strategies, announces Mc Jeans to be a leading Thai fashion and lifestyle retailer

Monday 27 September 2021 09:50
James Richard Amatavivadhana, acting CEO of Mc Group Public Company Limited or MC, a fashion and lifestyle retailer announces business plan for fiscal year 2022 via online platform that "Mc Group" creates business strategies to drive the company to be a leading Thai fashion and lifestyle and create sustainable values to shareholders as follows:
James Richard Amatavivadhana, CEO of Mc Group, reveals fiscal year 2021/2022 strategies, announces Mc Jeans to be a leading Thai fashion and lifestyle retailer
  1. Optimize financial performance to improve productivity and service for continuous growth
  2. Expand brand perception and product reputation by revitalizing brand message, creating brand awareness, building brand reputation, and expanding customer segmentation
  3. Develop leading retail platform with best-in-class customer experience by improving online, offline, and effective connectivity; optimizing operation to increase service level and develop localization strategy
  4. Transform organization to deliver differentiated employee experience
  5. Enhance process and technology to effectively support extended business value chain

The company cost management is highly effective. The right marketing strategy for targeted audience, the sales proportion and the right sales channels was implemented under the different measures/policies enforced by the government at each time to control the covid-19 pandemic. Those resulted in Gross Profit Margin (GP) of 59.6%, an increase from the same period of last year at 57.8%; while Net Profit Margin (NP) increased from 12.7% last year to 13.7%. The company maintains the Selling, General & Administrative (SG&A) expenses at 43%, which is close to last year's rate.

"We believe that the company will continue to grow. Though, in the fiscal year 2021 we faced wave after wave of Covid-19 crisis. During wave 4, the government enforced the lockdown measure once again resulting in the slowdown of sales in the first 2 months of the FY 2022. However, when the situation become better with lower transmission rate and more vaccination as the government planned to reopen the country. we are confident that this year the company will be able grow as planned.", Mr. James said.

Moreover, the company has strong financial position with zero dept and cash of 1,864 million Baht at the end of the last fiscal year. This will support the company for more growth opportunity as well as consistent dividend for shareholders. According to the data from 2014 until now, the dividend for shareholders has been around 5-6% every year, which is higher than the set policy. The normalized payout ratio is around 90% of net profit. Last year the payout was 98.1% of net profit, higher than the payout policy of not lower than 50% of net profit. The second half the FY 2021, the company will pay dividend of 0.20 Baht/share.

Mr. James added that the company will implement both online and offline strategies to support growth with customer focus technology and innovation. This is to ensure that the customer will receive the best experience from Mc products and services. For online experience, apart from mcshop.com, we also have marketplace and online partnership including Shopee, Lazada and JD Central, for example. Moreover, we focus on building strong partnership with our business alliances and strategic partners to increase revenue and profit and provide the best-in-class experience for our customers.

Online engagement is also very important. We have Mc Club membership of 1.6 million people. LINE OA is the latest feature of Mc Club to facilitate and create brand loyalty for customer. We have promotion, special services, and activities to increase customer engagement and online sales growth. For social media, we have 1 million followers on Mc Jeans Facebook Page. We expect the target online sales at 15% of total sales, an increase from last year at 12% or 389 million Baht.

"For business management during crisis, we continue to improve efficiency and profitability while heavily reducing cost in every parts. We aim to significantly increase sales through online channels while maintaining revenue and profitability from offline channels. Our employee's health and safety remain our priority. We provide vaccination for all employees.", Mr. James concluded.

Mr. Piya Oranriksuphak, CFO of Mc Group Public Company Limited added that in the fiscal year 2021/2022, the company expects to invest 80 million Baht for online and offline business expansion. Currently, the online sales is close to 15% target. The company also planned to open 22 new stores including 15 Mc Outlet, 4 shops and 3 counters in department stores. In the next 2 years, the company plans to invest 400 million Baht in creating offline and online distribution center to support both online and offline sales growth.

Source: MC Group

James Richard Amatavivadhana, CEO of Mc Group, reveals fiscal year 2021/2022 strategies, announces Mc Jeans to be a leading Thai fashion and lifestyle retailer