MC GROUP Public Company Limited -...
Transcript of MC GROUP Public Company Limited -...
MC GROUP Public Company LimitedQ3 2017 Results Summary
15 November 2017
MC is Life
Disclaimer
1
The information contained in our presentation is intended solely for your personal
reference only. In addition, such information contains projections and forward-looking
statements that reflect our current views with respect to future events and financial
performance.
These views are based on assumptions subject to various risks and uncertainties. No
assurance is given that future events will occur, that projections will be achieved, or
that the our assumptions are correct. Actual results may differ materially from those
projected.
Agenda
Pages
Results Highlights 3
Recent Development 5
Q3 2017 & 9M 2017 Financial Results 19
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3
Results Highlight
Results Highlight
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(THB millions) Q3/16 Q3/17 % YoY 9M16 9M17 % YoY
Sales Revenue 880 903 +3% 3,031 3,041 +0%
Gross Profit 484 473 -2% 1,625 1,564 -4%
EBITDA 175 137 -22% 683 578 -16%
Net Profit 132 94 -29% 525 416 -21%
Net Profit Margin 14.9% 10.4% 17.2% 13.5%
EPS (THB) 0.17 0.12 0.66 0.52
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Recent Development
CONFIDENTIAL
The Denim Focus
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Increasing just a touch of stretch into
jeans – shape up your body.- - - - - - - - - - - - - -
High waist gives a slim look and highlight the feminine curves.
MC COOL MC ME
CONFIDENTIAL 7
MC SELVEDGE DENIM
The Denim Focus
Flattering fits, premium fabrics (from Japan), custom washes and our new perfect detail
… This is everything you need in a pair of jean.
CONFIDENTIAL 8
KAIHARA JACKET
The Jacket Focus
Mc proudly present the supremecollection from Kaihara denim who
is the largest denim supplier inJapan and the leading denimsupplier in the world. Mc continuallyproduces jeans in Kaihara denimboth premium fabric andinnovation fabric.
CONFIDENTIAL 9
These jogger jeans are MC's most
comfortable pants ever. Featuring
a relaxed fit like sweatpants, with
the look as denim. The stretchy
easy waist design make them a
great option for everyday casual
wear. A trendy tapered cut gives
them a sleek style, ideal forseasonal looks.
Core Product Extension
MC JOGGER
CONFIDENTIAL 10
Core Product Extension
Denim Blazers create a great geek chic look.
Or wearing a denim jacket creates a more
relaxed appearance. Get to work with dark
washed or raw denim styles from Mc denim
jacket and Mc denim blazer.
SMART DENIM JACKET
CONFIDENTIAL
Core Product Extension
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Corduroy Collar Denim Jacket
The blue washed denim jacket is present
embroidered brand’s signature with twill fabric appliqués
Embroidery Denim Jacket
It’s time for FALL ESSENTIALS takes on the classics mix corduroy fabrics with denim.
CONFIDENTIAL 12
Mc-T Innovation
Softech 180 g. 100% cotton Micro brush
Dual Blend 165 g. 60% cotton 40% polyMicro brush
T-Shirt Dri Balance 150 g. 75% cotton 21% poly 4%Spandex
Polo Dri Balance 215 g.65% cotton 35% poly
T-Shirt Yarn dry150 g.100% cotton
CONFIDENTIAL 13
Activewear Innovation
THE FUSION OF FASHION AND FUNCTION
The Sportswear Windbreaker Jacket features a sleek design with hood for
lightweight wind protection. The Hoodies made from sustainable materials. - the brand's signature is reflective.
CONFIDENTIAL 14
Inspired by '90s styles, the Sports Light Jacket
delivers lightweight coverage and an old-school look that can wear any day, anywhere.
Activewear Innovation
The Tech Fleece Jackets feature innovative
fabric for
LIGHTWEIGHT WARMTH
CONFIDENTIAL
Aromatique Active
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Masstique Home Spa3 Collections
with full line
- Body Lotion
- Shower gel
- Soap bar
- Talcum Power
- Eau de Parfum
▪ Specialist in aromatic skincare for more than 30 years
▪ Products are developed from natural
extracts and pure essential oils exclusive from Charabot, a perfumery leader in Grasse, France
▪ Formulated without color, mineral oil, parabens, silicone and animal testing
▪ Our products are designed to make customers feel good nourishing their bodies and minds.
Deep Blue
Light Blue
True Blue
CONFIDENTIAL
Aromatique Active
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Jun Jul Aug Sep Q4
Terminal 21 Robinson Ratchburi
Retailer
Pop-up Stores
Online Channel
Mega Bangna Robinson LopburiCenterpoint of Siam Square
BIG+BIH Bitec Bangna Promenade
Robinson PetchburiRobinson Kanchanaburi
• Robinson Pitsanulok
• Seacon Square
• Potential location in Bangkok and upcountry
Mc Shops >290 POS
Phuket – Jang Ceylon
• Online Channel
• Counter in Depart
• Retailers and Other channels
CONFIDENTIAL
Mcshop.com Revamp
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New brand Landing Page with
recommended collection and new products
Mega BannerNew Features
Outlet Numbers Adjusted due to Strategy
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Total outlets declined by 18 points of sales in 3Q 2017 due mainly to the implementation
of international dealership reprogram since early this year. New stores rollout and
enlargement remained on-track in 3Q 2017.
End of 2016
# Points of Sales
897
End of 3Q17
# Points of Sales
879(-18)
BrandFree-
Standing
Modern
Trade
Mobile
unitInt'l Total
249 471 6 20 746
11 1 12
0 5 5 10
1 0 1
21 0 21
21 86 107
Total 303 563 6 25 897
Brand Free-
Standing
Modern
Trade
Mobile
unit Int'l Total
254 472 6 12 744
7 0 7
0 3 3
0 0 0
19 0 19
17 89 106
Total 297 564 6 12 879
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Q3 2017 Financial Results
Modest Growth in Sales amidst multiple headwinds
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Sales Revenue Quarterly Sales Revenue
0.3% YoY
9M169M17
(THB millions)
Sales Revenue by Channel
3% YoY
Despite the growth of 13.9% of free standing shops, national chain department stores,
superstores and other channels; overall same store sales declined at the rate of 9.0%
yoy as the Company continued to feel an impact from temporary contraction of
revenue from upcountry local department stores as anticipated.
Others = International, Mobile, Outside promotion, Factory sales
Distribution Channels Performance
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Remark: (1) Figures are calculated based on modern trade sales revenue, before GP. Excluded sales from international markets
and other source (i.e., exhibition etc.)
Modern Trade (1)
’000 THB
Free Standing Shop
THB
Total System Sales (TSS) & Same-Store Sales Growth (SSSG)
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Total System Growth Same Store Sales Growth
TSS & SSSG Quarterly TSS & SSSG
Remark: Hypermarkets are not included in the calculation in SSSG.
Free standing shop Modern Trade
Same-Store Sales Growth by Channel
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SSG By Channel Free Standing
Remark: Hypermarkets are not included in the calculation.
Modern Trade
Bangkok Upcountry
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Lower GPM yoy due to Special Promotional Offers
(THB millions)
-35.0%65.0%0
Gross Profit Gross Profit Margin Gross Profit Margin (excl TDC)
-2% YoY
Gross Profit Margin (GPM) of the apparel business slipped yoy. Similarly for the watch
business, the gross profit margin dropped as a result of higher volume of special price
products sold amidst a slowdown in domestic consumption.
-4% YoY
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Higher %SG&A to Sales – Reflective to selling expenses
YTD 2017 SG&A Breakdown% SG&A Expense to Sales
(THB millions)
SG&A expenses increased yoy due mainly to higher selling expenses. The ratio of SG&A
expenses to total sales revenue edged up on the back of modest revenue growth.
+5% YoY
+3% YoY
-15% YoY
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Lower EBITDA YoY
(THB millions)
Due to lower operating performance, EBITDA and EBITDA margin declined yoy.
-35.0%65.0%0
EBITDA EBITDA Margin EBITDA Margin (excl TDC)
-22% YoY
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Lower Net Profit YoY
-21% YoY
-35.0%65.0%0
Net Profit Net Profit Margin Net Profit Margin (excl TDC)
(THB millions)
Net profit dropped yoy due to lower GPM and higher SG&A to Sales. Overall net profit
margin (NPM) declined yoy mainly as a result of lower NPM of apparel business.
-29% YoY
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Financial Position Remained Strong with Net Cash Position
Consolidated Balance Sheet Net Debt to Equity Ratio
(THB millions) 2016 Q3/17
Cash & Cash Equivalent 1,277 806
Accounts Receivable 787 567
Inventory 1,989 2,315
Other Assets 1,144 1,342
Total Assets 5,196 5,030
Accounts Payable 425 590
Interest-bearing Liabilities 147 112
Other Liabilities 338 376
Total Liabilities 910 1,078
Shareholders' Equity 4,286 3,952
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Higher Inventory Days from Lower Sales
ROA ROE
Finished Good Inventory Days (Months) Cash Cycle (Months)
THB millions THB millions
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Consistent Dividend Payment
DPS THB 0.45
XD 23 Aug 2017
Book Closing 28 Aug 2017
Payment 8 Sep 2017
Remark: Dividend policy is not less than 50% of net profit
Announced dividend payment for the performance during
1 Jan 2017 to 30 Jun 2017 as follows:
2017 Guidance (Revised)
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Previous Revised
Sales growth 3% -3 to -5%
Gross profit margin 52%-53% Maintained
% SG&A to sales 35%-36% Maintained
CAPEX THB 80 mn Maintained
Effective tax rate 9%-10% Maintained
Dividend payout Not less than 50% Maintained
Thank you
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Investor Relations
MC GROUP Public Company Limited
Tel: +662 117-9999 Ext 1210
Line ID: @mc_jeans