Post on 14-Jul-2020
OPPORTUNITY DAY16 May 2019
SABINA PUBLIC COMPANY LIMITED www.sabina.co.th
03Financial Highlight
Business Update
Performance Update Q1 2019
0201
AGENDA
SABINA PUBLIC COMPANY LIMITED
04Appendix
Performance Update Q1 2019Sabina Public Company Limited
3
Performance Update Q1 19
Q1 19 Highlights
• Delivered impressive revenue growth of 12.3 % YoY as a result of strong sales performance in core channels, particularly in NSR channel.
• Successfully launched ‘Seamless Fit’ campaign through our integrate marketing activities.
• Expanded more stores in CLMV.
• Launched high margin products during Valentine’s Day in February.
• Gross profit increased to 54.7% YoY due to the lower cost sourced products from trusted sub-contractors.
• Impressive bottom line growth of 12.3% YoY primarily driven by our higher Gross Profit.
• NPM significantly expanded as a result of 1) more sales contribution from NSR, Sabina Export segment 2) an effective cost management and 3) adaptive marketing campaign.
1,141 1,198 1,258 1,3561,595
364 421
53.0% 52.1% 52.8% 50.9% 51.6% 53.0% 54.7%
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
Gross Profit GPM
147 166 176243
362
79 95
6.8% 7.2% 7.3%9.1%
11.7% 11.5% 12.3%
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
Net Profit NPM
THB mm
2,165 2,308 2,397 2,6793,103
690 774
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
Revenue
Gross Profit
Net Profit
11.8 % 15.8%
38.4 % 48.7%
4
Q1 2019 Performance
Sabina at a Glance (Cont’d)
G 4%
G 12%
2016 2017 2018
Sabina Revenue
Q1 2018 Q1 2019 % YoY
Net Profit 79 95 + 20%
Net Profit
THB mmTHB mm
2,397
3,103
2,679
G15.8%
51
63
78
51
79
96
110
75
95
Q1 Q2 Q3 Q4
2017 2018 2019
5
Financial overview by segment
Not include other revenue and service revenue
Performance Update Q1 19 (Cont’d)
Sabina Brand Revenue NSR Revenue
THB mm
1,873 1,977 2,112 2,291 2,489
541 585
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
• Successfully launched ‘Seamless Fit’ campaign through our integrate marketing activities.
• During Q1 Introduced 4 new branches i.e. Robinson Payao, Central Patong, etc.
• Launched new collections i.e. Madmoisellei, Sabinie, Swimwear, Maggie Mae, etc.
• Launched co-promotion campaign with prominent brands of Hospital, Bank , Telco company.
Sabina Export Revenue OEM Revenue
• Expanded more offline and wholesale channels in Myanmar and Vietnam bringing the total point of sale outside Thailand up to 108 stores.
• Expanded more online channels in Vietnam and Myanmar.
• Continued to share our knowledge and expertise to local distributors, in the area of inventory management, POS system, PC training, P&L analysis of sale channels and monthly promotion plan
• Launched the exclusive products for each country to fit with the local lifestyle and fitting
• Due to UK economy slow down (Brexit), some shipments are postponed to Q2, 2019.
• Our orders comprised of only high margin products such as fashion lingerie, big cup bra and swimwear.
• Continued to maintain high quality and on-time delivery.
• Cooperated with key partners to create big campaign, especially for Sabina brand in order to get better awareness and visibility to end customers.
• Collaborated with well-known brands for better communication and promotion to end customers.
• Increased more online channel i.e. Fitcraze.
THB mm
- - - 96
254
57 92
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
38 64 59 52 61
14 21
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
THB mm THB mm
242 256 212 220
287
74 73
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
8.5% 8.6%
3.8% 30.3%-12.7% 17.4%
163.6%
6
Q1 2019 Overview by segmentation
Not include other revenue and service revenue
76%
585
SABINA BRAND
9%
21
SABINA EXPORT
12%
92
NSR
3%
73
OEMTHB mm
Sabina Brand
7
Overview by segmentation
SABINA BRAND
2017Wireless BraPerfect Bra Doomm Series
2016Perfect Bra
2018Wireless BraDoomm Series
Big Cup
All Cup
All CupSmall Cup
2006-2015Doomm Series
Small Cup
THB mm
Sabina Brand
2019Seamless Fit
All Cup
76%
585
G +8%
8
Special campaigns
Sabina Brand (Cont’d)
Special campaigns Q1 2019
Seamless Fit : TVC / Viral Clip Behind The scene
Making of : Seamless Fit Online Promotion Campaign
9
Special campaigns
Sabina Brand (Cont’d)
Special events Q1 2019
LINE Creators Market Connect Day Events at leading department store Baby&Kids Best Buy 2019Partner
Samitivej Hospital SCB KBANK Krungsri AIS DTAC
Donate to Baan Nontapumfoundation
CSR
Doomm Series : Celebrated 10M pcs.
Campaign
10
Sabina Brand (Cont’d)New Collections
Influencers
11
Non Store Retailing
NSR
ONLINE
TV Shopping
Catalogue
THB mm
12%
92
G +62%
12
Non-store Retailing Live Streaming Video Brand of the day
Shopee Lazada
13
Bangladesh 10
Pakistan 9
Vietnam 41
Philippines 29
Myanmar 10
Laos 6
Cambodia 3
+1 -1
+2
Sabina Brand Export
New Store/POS expansion (Q4 2018)
Shopee : Tet
Total 108 outlets as of Q1 2019 , net addition of 5 outlets from 2018.
OPEN CLOSE TOTAL
New Store : Vincom Tran Duy Hung
THB mm
21
3%
Sabina cooperate with Marc
Launched the collection to match with the Chinese New Year
Joined the campaign with Outerwear Brand to increase the customer base in online channel
Expanded more wholesale market stores in Vietnam
Wholesale market
G +43%
14
OEM
High margin products
9%
73THB mm
Visiting of UK Buyer for big cup swimwear development
G -2%
Financial HighlightSabina Public Company Limited
16
147 166 176243
362
95
6.8% 7.2% 7.3%
9.1%
11.7%12.3%
2014 2015 2016 2017 2018 Q1 2019
Net Profit NPM
2,165 2,308 2,397 2,679
3,103
774
2014 2015 2016 2017 2018 Q1 2019
Strong GPM and steadily expanding EBIT margins
948 953 997 1,051 1,067 1,156
304
43.5% 44.3% 43.4% 44.1%40.1% 37.4% 39.5%
2013 2014 2015 2016 2017 2018 Q1 2019
SG&A SG&A/Sales
Solid top line growth with strong margin improvement
Rapidly trending down SG&A to sales
% THB mm
% YoY Growth
-1% 7% 4% 12% 16%
THB mm THB mm
% YoY Growth
25.4% 12.7% 6.1% 38.4% 48.7%
Consistently growing top line
Significantly expanding net profit and NPM
Financial Highlights (Cont’d)
7.7% 8.7% 9.2% 9.2% 11.4%14.6% 15.6%
51.3% 53.0% 52.1% 52.8% 50.9% 51.6%54.7%
2013 2014 2015 2016 2017 2018 Q1 2019
EBIT Margin GPM
17
Financial Highlights (Cont’d)Steadily improving working capital management
449402 382
296258 271
2014 2015 2016 2017 2018 Q1 2019
56 50 49 45 44 49
6.57.3 7.5
8.1 8.37.5
2014 2015 2016 2017 2018 Q1 2019
DSO (Days) A/R Turnover (Times)
41 42 41 46 41 48
8.8 8.7 8.98.0
8.9
7.6
2014 2015 2016 2017 2018 Q1 2019
A/P Turnover Days (Days) A/P Turnover (Times)
Days inventory outstanding and inventory turnoverDays sales outstanding and account receivable turnover
Improving cash conversion cycleAccount payable turnover days and account payable turnover
434 394 374297
255 270
0.8 0.9 1.0
1.21.4 1.4
2014 2015 2016 2017 2018 Q1 2019
DIO (Days) Inventory Turnover (Times)
Days
18
D/E
Key Financial RatioHealthy balance sheet with ample debt room to raise fund whenever it is needed
1,566 1,664 1,754 1,895 1,835 1,937
741 552 484 492
767 777
0.47
0.33 0.28 0.26
0.42 0.40
2014 2015 2016 2017 2018 Q1 2019
Total Equity Total Liabilities D/E
9.7 10.3 10.3
13.3
19.4 19.3
2014 2015 2016 2017 2018 Q1 2019
6.47.3 7.9
10.5
14.5 14.6
2014 2015 2016 2017 2018 Q1 2019
ROA ROE
EPS
0.420.48 0.51
0.70
1.04
0.27
2014 2015 2016 2017 2018 Q1 2019
Percent Percent
THB/Share
19
Stock Information and DividendsDividend policy is not less than 40% of normal net profit
0.42 0.48 0.51
0.70
1.04
0.07 0.08 0.10 0.14
0.50
0.10 0.11 0.14
0.68
0.54
-
0.20
0.40
0.60
0.80
1.00
1.20
-
0.20
0.40
0.60
0.80
1.00
1.20
2014 2015 2016 2017 2018
EPS (THB/Share) 1st Half 2nd Half
2014 2015 2016 2017 2018
40% 40% 47% 117% 100%
THB
Business UpdateSabina Public Company Limited
21
FACTORY
Output 2018 2019 %G
Ys 4.7 4.7 0%
Cn 2.7 2.7 0%
Bn 1.4 1.9 34%
Tp 2.0 2.0 0%
S5 1.4 1.6 11%
Capacity 12.2 12.8 5%
2,400 1,400 1,550 1,851 1,833
1,900
1,400 1,450 1,622 1,677
800
1,100 1,200 1,162 1,150
2011 2013 2017 2018 Q1 2019
PC
Nonsewing+PC
Sewing
2017 2018 Q1 2019
Sourcing GPM 59%
Produce GPM 50%
GPM 51.6%
Output (million pcs.)
Manpower Production : Sourcing
96% : 4%
Working capital and inventory management
Inventory turn over at 1.4 time despite the increase in unit production of 6.1% and sourcing of 33%
- Sourcing gains 9.3% higher margin than production.
4,6354,200
3,900
5,100
- 28 employees have been increased from the expansion of the moulding line.
67% : 33%82% : 18%4,664
Sourcing GPM 62.2%
Produce GPM 52.9%
GPM 54.7%
434 394 374297
255 270
0.8 0.9 1.0
1.2 1.4 1.4
2014 2015 2016 2017 2018 Q1 2019
DIO (Days) Inventory Turnover (Times)
22
Sabina Brand Launching new collection
WOONSEN COLLECTION
23
Sabina Brand Launching new collection
Influencer
24
Sabina Brand (Cont’d)Our integrated marketing strategy in both offline and online channels
NEW WEBSITE
www.sabina.co.th
25
Growth Strategy in 2019-2024
Customer centric product development
Consistently introduce new products / collection that meet customers needs
Backed by state-of-the-art marketing activities (plan to invest 3-4% of sales in marketing activities)
Store expansion
Price optimization
Increase B2B Business
Wider and Exclusive assortment in online and TV channels
Joint business plan with key partners to align sales & marketing plan
Provide customer seamless Experience
Personalized marketing campaign
Sabina brand building
Strengthen distributors
Stores expansion
Online and TV channels expansion oversea
Product innovation Maintain superb quality and
on-time delivery
Now Looking Forward
Key Drivers
Sales will be supported by both Sabina manufacturing capacity together with an increase in product sourcing from trusted sub-contractors
Sabina
Brand
NSR
Export
OEM
ESG
26
ESG Principles
Zero Waste policy
5S
SOLAR
EVAP system
Non Plastic Use
Disabled employees
Mother Jintana Foundation
Sewing Cup, Sewing Heart
Factory Model : Lean , 5 S , Kaizen
AunJai Fund (Micro Finance )
Code of conduct
CAC (Collective Action Coalition Against
Corruption )
WRAP (Worldwide Responsible Accredited
Production)
SEDEX (Supplier Ethical Data Exchange)
SABINA PUBLIC COMPANY LIMITED www.sabina.co.th
AppendixSabina Public Company Limited
29
0%
BRAND EXPORT
2%
BRAND EXPORT
8%
NSR
9%
OEM
10%
BRAND
90%
OEM
81%
BRAND
From OEM manufacturer to brand developer
2005: No pricing ability with nominated supplier 2018: Ability to command retail price with variety supplier
Sale Report Brand and OEM (2006 - 2018)
60%55%
50%
35%30%
25%
10% 9% 11% 11% 9% 9%9%
40%45% 50%
65% 70%75%
90% 91% 89% 89%97% 91% 91%
1,3461,163
959
551556
441
185 200 242 250 216 220 287
848903
994
1,0991,310
1,459
1,824 1,978 1,911 2,0442,108
0
500
1,000
1,500
2,000
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
OEM Sabina
% Gross Profit
27% 26% 37% 37% 35% 44% 50% 51% 53% 52% 53% 51% 52%
% Net Profit Margin
8% 6% 9% 4% 3% 3% 6% 5% 7% 7% 7% 9% 12%
2011: Thailand Great flood / Euro-zone crisis
2012: Minimum Wages hike to THB 3002007-2008:Subprime 2010:UK Financial Crisis
2,439 2,803
Medium (<THB700) Medium-High(THB700-1,000) High(>THB1,000)
Children(6-15 years)
Teens(15-25 years)
Young women(25-45 years)
Women( > 45 years)
30
Sabina at a GlanceWide product offering with ability to capture broad group of customers
Sabina at a Glance (Cont’d)
31
Highly penetrated and robust distribution network
ShopDepartment stores and
others
Modern Trade
Special Event
DistributorsQ1 2019
Strengths
Key channel for high valueproducts
Advertising channels
Channels to gather customer behavior data for R&D
Key channel for mid-end products
Key channel for low price products
Key channel to manage obsoleteinventory
Domestic International
Vietnam 41
Philippines 29
Myanmar 10
Laos 6
Cambodia 3
Bangladesh 10
Pakistan 9
83 Shops 2-3 Events per quarter80 Department stores110 other channels
308 Modern trade
Traditional Store Retailing Channels
Non-stores Retailing Channels (NSR)
3 TV channels, 9 online, 2 direct catalog distribution channels
New growth drivers with minimal cost
Consistently ranked the Best selling products in TV channels since 2019
Sabina Export and POS Q1 2019 OEM Customers
Manufacture only high margin OEM products for selected brands
Purely distributed by local partnerswith no direct investment on the stores
TV Shopping
Online
Direct Catalogue
Q1 2019 Store Total
Department store Central 23
Robinson 48
The mall 9 80
Modern trade Big C 131
Lotus 176
Makro 1 308
Shops 83
Other 110
Total 581