Clothing maker MC ups revenue growth targets to 20% rise as economy recovers and new outlets open up

MC Group Plc (MC), one of the country’s leading local maker of denim clothing, has come out to say that it expects its revenues to rise by as much as 20% during this year as it looks to expand a 100 new outlets.

MC, whose fiscal year ends in June of each year, said that for the current fiscal year ending June 30th, 2023, the firm expects its revenues to rise by as much as 20%, an upward revision from the previous forecast of 15% growth, thanks to the recovering economy.

During fiscal year 2022 ending June 2022, MC had reported revenues of 2.95 billion Baht and a net profit of 485.7 million Baht. The 2022 profits were 40 million Baht higher than those seen in 2021despite the revenues being 300 million Baht lower than the previous year’s.

James Richard Amatawiwat, Chief Executive Officer of MC revealed that the company has increased its sales revenue growth target in 2022/23 to grow at least 20% from the previous target of 15% growth due to the same store sales (SSSG) growth of 10-20% and the opening of new stores.

He said the rise in online sales and opening of new outlets were all helping the company expand its sales volumes.

James said that the introduction of new collection and the increased economic activities has helped increase the average bill per customer to about 1,500 to 2,000 Baht.

MC which is 47.62% owned directly by the Seripanu family and 8.84% is owned by an investment vehicle – Mindo Asia Investment, thus 56.46% is owned by a small group of investors, said that for the 2nd quarter of 2022/23 (Oct.-Dec. 2022), the growth was better than the previous quarter, which is in accordance with the effective working strategy.

James said that as a result, more than 620 same-store sales grew well and online sales grew by triple digit, along with cost control and expenses in various parts.

As for the 3rd quarter (January 2023 to March 2023), MC expects growth of more than those seen during 2nd quarter due to the reopening of all the new MC Outlet stores that would be operational.

Apart from this MC was also preparing to open new branches of MC Outlet continuously plus more marketing for new generation customers.

This year’s plan is to open 45-50 MC Outlet branches, resulting in a total of just over 100 MC Outlet branches from the current 70 branches that have been opened and plans to expand to more than 200 branches within next year.

The company spent 400 million baht to build a distribution center to support sales growth by joining hands with partners to manage the warehouse. It is expected to open for business in the middle of this year by expecting to join hands with local partners mainly looking at neighboring countries.

Currently, the company has cash flow to support investment in various parts of more than 2.1 billion Baht and has no debt from financial institutions, so it is not affected by rising interest rates. It is also in the process of studying related businesses in order to extend the main business for sustainable growth.

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