Beauty Community Public Company Limited (BEAUTY) has reported its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
BEAUTY reported a net loss of 35.18 million baht, showing a better performance when compared to a net loss of 61.36 million baht in 2Q20.
The company reported total revenue in 2Q21 at 81.74 million baht, representing a decrease of 36.60%. Meanwhile, gross profit dropped by 64.23% to 23.36 million baht.
However, selling expenses for the period fell 56.12% to 45.49 million baht, and administrative expenses dropped 15.52% to 28.65 million baht.
BEAUTY stated that this renewed round of the COVID-19 crisis in Thailand and in many other countries is the main cause for the drop in sales revenue. This time the severity of the crisis is much more apparent, prompting the government to impose the lockdown measure in 13 provinces impacting the operation of 25 branches.
For the overseas market, particularly the Chinese market, most customers now switch to buying more Chinese-made products online in response to the government’s policy aiming to promote the consumption of domestic products and thus imposing more restrictions on foreign imported goods.
Interest in foreign goods also drops as Chinese citizens stop travelling to overseas countries, resulting in BEAUTY’s sales agents having to readjust their marketing strategies.
As part of the crisis management plan, the company has introduced Business Re-engineering plan on three fronts comprising: 1) Management Re-structuring for increased efficiency 2) Business Re-modelling 3) Market Re-new by expanding sale channels that have high growth potential and can reach a larger customer base that goes beyond the traditional retail shop channel.
With these, the company planned to increase the ratio of the sale revenue generated by the domestic market that is deemed more sustainable and less susceptible to crisis and changes in the longer term. BEAUTY anticipated that with these restructuring strategies, the company’s sales can bounce back quickly once the COVID-19 pandemic gradually subsides.