Beauty Community Public Company Limited (BEAUTY) has reported its yearly consolidated financial statement of 2019 through the Stock Exchange of Thailand as follows;
BEAUTY reported a net profit in 2019 at 232 million baht, decreased 76.55% from a net profit of 991 million baht in 2018. The decrease mainly came from sales and gross profit decreased and cost of sales increased but the company has the ability to control costs quite well.
Total revenue in 2019 was THB 2,020.7 million, decreased 42.28% YoY while the Same Store Sales Growth (SSSG) declined 45.04%. The decline in SSSG was mainly due to the decrease in store sales in wholesale.
Total revenue decreased by many channels, such as the effect from a decreased number in Chinese tourists, the effect from new implemented laws in China on the main market in early 2019 and yuan currency falling relative to Thai baht with the current economic slowdown domestic consumption has not recovered. Consumers have lower purchasing power while a heavy competition in the cosmetic business market pressured the company’s revenue.
Selling expenses in 2019 was THB 701.75 million, decreased 12.37% YoY. The decline in selling expenses mainly came from the adjustment of the company’s strategy and operational plans, which focuses on managing expenses control.
Administrative expenses in 2019 was THB 234.11 million, decreased 11.97% YoY. The decrease was due to the Cost Saving Program to increase the effectiveness of cost control.
In addition, the Board of Directors of BEAUTY has approved a resolution for a dividend payment to be paid on May 21, 2020, at a value of ฿0.036/share with an ex-dividend date on April 30, 2020.
Mr. Suwin Kraibhubes, Chief Executive Officer of BEAUTY, has stated that the company has set a target to promote the brand “BEAUTY” to be the leader of International Beauty & Health Business in Asia, while expecting a 20% revenue growth and maintaining gross profit margin at 15%.
However, Mr. Suwin expects that the outbreak of coronavirus might affect BEAUTY’s performance in 1Q20. In the meantime, the company is monitoring the situation closely and has been in contact with distributors in China and other countries to adjust BEAUTY’s business plan. The adjust will be focused on the company’s expenses and operation control in order to receive a soft impact from the virus outbreak.