Mr. James Richard Amatavivadhana, CEO of MC Group Public Company Limited or MC that retails fashion / lifestyle products under "Mc Jeans" brand, reveals that operating results from the first quarter of fiscal year 2023 (1 July 2022 - 30 September 2022) delivered the net profit of 116 million baht. The amount marked an increase of 390% or 92 million baht from Q1/2022, which recorded the profit of 24 million baht. Net profit margin also soared to 15 % - up by 9.7% from 5.3% year over year.
In Q1/2023, MC Group's total sales revenue was 759 million baht - up by 321 million baht or 73.3%. The significant increase resulted from offline outlets' bigger sales. To date, offline channels namely free-standing shops and department stores have been the company's major distribution channels. By category, freestanding shops accounted for 65% of the total sales revenue. Department stores accounted for 23%, e-commerce for 9% and other channels for 4%.
"Our revenue and profit rose to the pre-COVID level. The 116-million-baht profit, which was recorded in the first quarter, was the biggest quarterly profit in five years. The profit growth was in line with the consumer confidence index, which soared from 44.3 in June to 46.4 in September. Consumer confidence improves after the government eases COVID-control measures, paving way for economic activities to return to normal. Other favorable factors include the government's economic-stimulus measures such as half-half copayment scheme and subsidies via welfare cards. Thanks to these measures, consumers' purchasing power increases in the way that benefits small entrepreneurs," the CEO of MC Group continues.
Mr. James Richard says MC Group has operated its business in accordance with its core strategies that focus on rigid cost control, improving expense management, a great product mix, promotions and efficient distribution-channel management. MC Group's gross profit thus reached 490 million baht in Q1/2023 - an increase of 82.4% or 222 million baht year over year - as sales soared higher. Gross profit margin, meanwhile, stood at 64.6% - up from 61.4% when compared with Q1/2022.
Mr. James Richard expects Q2/2023 (October - December 2022) to deliver impressive results as well, given that the second quarter coincides with high season. After Thailand's reopening, gross domestic product has been growing. MC Group therefore is now urgently revamping and expanding Mc outlets. The company has planned to open 15 new Mc outlets in the fiscal year 2023. In the first quarter of the year, four new outlets have already been launched. There is a possibility that the number of Mc outlets will rise to 100 this year. Throughout the year, MC Group will also offer promotions and conduct various campaigns.
On financial position as of 30 September 2022, MC Group's total assets had the value of 5,325 million baht. The figure marked an increase of 5% or 263 million baht from 5,062 million baht as of 30 June 2022. The hike mainly came from the growth of cash and temporary investments. Their value grew by 116 million baht from 1,995 million baht as of 30 June 2022 to 2,111 million baht as of 30 September 2022.
Source: MC Group