MC Concludes Accounting Year 2020 with Great Performance, Records Profit of Bt 407 Million, Approves Bt 0.20 Dividend Per Share

“Mc Group” performed well in accounting year 2020, with its net profit jumping by 33.1% to 407 million baht. Revenue from sales during the period totaled 3,182 million baht after Mc Group adjusted its manufacturing line to produce new products and also proactively deployed online distribution channels to satisfy demand during COVID-19 outbreak. As it also successfully curbed Selling, General and Administrative Expense (SG&A) by 8.3%, its Board of Directors has approved the dividend payment of 0.20 baht per share.

Mrs. Chananyarak Phetcharat, chief executive officer of Mc Group Public Company Limited (MC), reveals the overall performance of her firm in the accounting year 2020 (1 July 2019 – 30 June 2020). According to her, MC recorded the net profit of 407 million baht, up by 33.1% from the same period a year earlier. Revenue from sales totaled 3,182 million baht, down by 4.8%, because COVID-19 significantly affected operations with sales in the fourth quarter (April – June 2020) at 550 million baht.

The Thai government had imposed strict lockdown to control COVID-19 between 22 March and 17 May 2020. During the lockdown, MC had to close more than 90% of its offline outlets (MC shops & MC counters at department stores/superstores). To deal with the situation, MC quickly adjusted its manufacturing lines to produce new products such as fabric face masks and face-shield caps to satisfy emerging demand in a timely manner. Also, the firm proactively deployed online distribution channels and successfully recorded significant online sale growth.

MC Group, moreover, achieved greater cost-control efficiency. In 2020, its Gross Profit Margin stood high at 58.2% on average and its Net Profit Margin soared by 9.0% from a year earlier to 12.7% thanks to efficient SG&A. For example, MC Group successfully negotiated for a lower space-rental rate during COVID-19 outbreak and achieved greater cost-control efficiency in regards to personnel expenses. SG&A in 2020 stood at 1,391 million baht, down by 8.3% from the same period of the previous year, therefore SG&A to sales revenue decreased from 45.4% in the previous year to 43.7% this year.

“It has been a very challenging and tough year for all businesses. Due to COVID-19 outbreak, we had to quickly adjust our supply chain and abruptly change our business model. Our focus now shifts to online distribution with our shop salespersons nudged to transform themselves into online sellers. Mc Group is going to place a stronger emphasis on online channels in the future. Our 2021 goal is to ensure that our online sales will account for at least 15% of our total sales,” Mrs. Chananyarak says.

Mrs. Chananyarak adds that on 25 August 2020, MC Board of Directors approved the dividend payment of 0.20 Baht. The amount accounted for 107.8% of Net Profit. Record date of shareholders eligible for the dividend is 6 November 2020 with payment to be made on 25 November 2020.

As of 30 June 2020, MC has 1,481 million baht in cash and short-term investments increased 10.2% YoY as a result of 12.1% YoY decreased inventory.

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