Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
OPPORTUNITY DAY27 February 2019
SABINA PUBLIC COMPANY LIMITED www.sabina.co.th
03Financial Highlight
Business Update
Performance Update 2018
0201
AGENDA
SABINA PUBLIC COMPANY LIMITED
04Appendix
Performance UpdateSabina Public Company Limited
3
Performance Update Q4 18
Q4 18 Highlights
• Delivered impressive revenue growth of 14.8 % YoY (15.8% FY) as a result of strong sales performance in core channels, particularly in NSR channel.
• Successfully launched ‘DOOMM DOOMM’ campaign (Q3-Q4) through our integrate marketing activities.
• Launched high margin products during X’ mas and New year event.
• Gross profit increased to 54.0% YoY (51.6% FY) due to the arrival of lower cost sourced products that was postponed from Q3.
• Impressive bottom line growth of 9.7% YoY (11.7% FY) primarily driven by our SG&A to sales improvement.
• NPM significantly expanded as a result of 1) more sales contribution from NSR, Export and OEM segment 2) an effective cost management and 3) adaptive marketing campaign.
1,141 1,198 1,258 1,3561,595
343 417
53.0% 52.1% 52.8% 50.9% 51.6% 51.1% 54.0%
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
Gross Profit GPM
147 166 176243
362
51 75
6.8% 7.2% 7.3%9.1%
11.7%
7.6%
9.7%
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
Net Profit NPM
THB mm
2,165 2,308 2,397 2,6793,103
675 775
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
Revenue
Gross Profit
Net Profit
11.8 % 15.8%
38.4 % 48.7%
4
2018 Performance
Sabina at a Glance (Cont’d)
G 4%
G 12%
2016 2017 2018
Sabina Revenue
51
63
78
51
79
96
110
75
Q1 Q2 Q3 Q4
2017 2018
2017 2018 % YoY
Net Profit 243 362 + 49%
Net Profit
THB mmTHB mm
2,397
3,103
2,679
*2018 employee bonus is 0.50 months higher than 2017.
G15.8%
5
Financial overview by segment
Not include other revenue and service revenue
Performance Update Q4 18 (Cont’d)
Sabina Brand Revenue NSR Revenue
THB mm
1,873 1,977 2,112 2,291 2,489
567 634
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
• During Q4 Introduced 5 new branches (Net opening of 13 branches FY 2018).
• Launched new collections i.e. a well known sticker collection and the luxury lingerie
• Launched co-promotion campaign with prominent brands of hospital and insurance company.
Sabina Export Revenue OEM Revenue
• 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
• Ordering THB 1 mm lower than Q4 last year because the bigger portion have been ordered since Q3.
• Launched the exclusive products for each country to fit with the local lifestyle and fitting
• Due to the EU and UK economy slow down, some shipments are postponed to Q1, 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
• Launched corporate campaign for O2O platform in 11.11 Shopping Festival and Black Friday in order to achieve customer seamless experience strategy.
• Special media barter for big campaign with key market place channels in order to get more visibility and support.
THB mm
- - - 96
254
20 54
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
*Commenced in 2017
38 64 59 52 61
16 15
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
THB mm THB mm
242 256 212 220
287
69 69
2014 2015 2016 2017 2018 Q4 2017 Q4 2018
-0.8%
5
8.5% 8.6%
3.8% 30.3%-12.7% 17.4%
163.6%
6
2018 Overview by segmentation
Not include other revenue and service revenue
81%
2,489
SABINA BRAND
9%
61
SABINA EXPORT
8%
254
NSR
2%
287
OEMTHB mm
Sabina Brand
7
Overview by segmentation
81%
2,489
SABINA BRAND
2017Wireless BraPerfect Bra Doomm Series
2016Perfect Bra
2018Wireless BraDoomm Series
Big Cup
All Cup
All CupSmall Cup
2006-2015Doomm Series
Small CupTHB mm
Sabina Brand
8
Sabina Brand (Cont’d)
Terminal 21 Pattaya Takashimaya - Icon Siam
Introduced 5 new branches YTD
• 1 shops and 4 outlets format
• Total 580 branches
Shop Department Store
Big C Nakhonsrithammarat 2
Robinson Chaiyaphum
Big CChiangrai
Modern Trade
Store expansion Q4 2018
9
Sabina Brand (Cont’d)New Collections
Pre - Teen Product Teen Product Active wear Product Hi Fashion ProductCool Teen offers the perfect support for girls growing into gorgeous young ladies.
Collaborate with Thai’s artist cartoons that are popular in LINE Creators Market .
Sabina launched the first premium fashion sportswear products, designed with high quality material, fine details and finishing. These pieces can be paired easily with outerwear outfit
Madmoiselle Intimates ,‘Festival Collection' , the luxury brand new from Sabina.
Influencers
10
Special campaigns
Sabina Brand (Cont’d)
Special campaigns Q4 2018
Special events Q4 2018
Co-promotion with several brands, hospital, foundation and insurance company
Events at leading department store
Special campaigns
CSR
Black Friday Sabina 11.11 Buffet Panty Zone
Wholesale
11
Sabina Brand (Cont’d)Special campaigns
Gift Card TU Cheerleader
Sabina Gift Cards are the perfect gift for any occasion, especially on the valentine day, birthday and new year day.
Sponsorship for Thammasat Universiry Cheerleader to increase brand awareness.
12
Non Store Retailing
8%
254
NSR
ONLINE
TV Shopping
Catalogue
THB mm
13Note: (1) Sale will be distributed by our local partners in Vietnam and Philippines
Non Store RetailingSpecial Barter for Big Campaign 11.11 and 12.12
Regional Campaign with online marketplace across SEA(1)
Thailand Vietnam Philippines
LAZADA SHOPEE
14
Non-store Retailing
Corporate campaign on 11.11 Shopping Festival - Key visual for offline and online platform- One time promotion for all platforms
Corporate campaign for O2O strategy Special barter for big campaign 11.11
Special viral clip to create brand awareness and promote “11.11 Shopping Festival “ by using our brand ambassador “Chompoo Araya.
15
Bangladesh 8
Pakistan 9
Vietnam 41
Philippines 29
Myanmar 10
Laos 5
Cambodia 3
+1 -1
+2
OEM and Sabina Brand export
OEM
Sabina brand export
New Store/POS expansion (Q4 2018) Season Sale : Women’s day
High margin products
Total 103 outlets as of December 2018 , net addition of 11 outlets from 2017.
OPEN CLOSE TOTAL
Season Sale : Black Friday
New Store : Go Mỹ Tho PC Training
9%
61
2%
287
THB mm
THB mm
Financial HighlightSabina Public Company Limited
17
147 166 176243
362
6.8% 7.2% 7.3%
9.1%
11.7%
2014 2015 2016 2017 2018
Net Profit NPM
2,165 2,308 2,397 2,679
3,103
2014 2015 2016 2017 2018
Strong GPM and steadily expanding EBIT margins
948 953 997 1,051 1,0671,156
43.5% 44.3% 43.4% 44.1%40.1% 37.4%
2013 2014 2015 2016 2017 2018
SG&A SG&A/Sales
51.3%53.0% 52.1% 52.8%
50.9% 51.6%
7.7%8.7% 9.2% 9.2%
11.4%
14.6%
2013 2014 2015 2016 2017 2018
GPM EBIT Margin
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)
18
Financial Highlights (Cont’d)Steadily improving working capital management
449402 382
296258
2014 2015 2016 2017 2018
56 50 49 45 44
6.57.3 7.5
8.1 8.3
2014 2015 2016 2017 2018
DSO (Days) A/R Turnover (Times)
41 42 41 46 41
8.8 8.7 8.98.0
8.9
2014 2015 2016 2017 2018
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
0.8 0.9 1.0
1.21.4
2014 2015 2016 2017 2018
DIO (Days) Inventory Turnover (Times)
Days
19
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
741 552 484 492
767
0.47
0.33 0.28 0.26
0.42
2014 2015 2016 2017 2018
Total Equity Total Liabilities D/E
9.7 10.3 10.3
13.3
19.4
2014 2015 2016 2017 2018
6.47.3 7.9
10.5
14.5
2014 2015 2016 2017 2018
ROA ROE
EPS
0.420.48 0.51
0.70
1.04
2014 2015 2016 2017 2018
Percent Percent
THB/Share
20
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
22
FACTORY
Output 2018 2019 %G
Ys 4.7 4.9 4%
Cn 2.7 2.9 7%
Bn 1.4 1.9 34%
Tp 2.0 2.0 1%
S5 1.4 1.6 14%
Capacity 12.2 13.3 9%
2,400 1,400 1,550 1,851
1,900
1,400 1,450 1,622
800
1,100 1,200 1,162
2011 2013 2017 2018
PC
Nonsewing+PC
Sewing
390434
394 374297
255
0.90.8
0.9 1.0
1.21.4
2013 2014 2015 2016 2017 2018
DIO (Days)
InventoryTurnover(Times)
2017 2018 2019E
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 20% and sourcing of 18%
- Sourcing gains 9% higher margin than production.
4,6354,200
3,900
5,100
- 410 employees have been increased from the expansion of sewing line and the moulding line.
64% : 36%82% : 18%
23
Sabina Brand Launching new collection for kids product
SABINIE SABINIE SWIMCOOL TEEN SWIMWEARMAGGIE MAE
24
Sabina Brand (Cont’d)Our integrated marketing strategy in both offline and online channels
Our Highlight in Q12019
We boosted our ads in prominent Thai TV series
“Greatmen academy and Thai Movie “Friend Zone”
Online Marketing
For the first time of the Sabina’s presenter, BaifernPimchanok becomes sabina product consultantfor one day.
25
Sabina Brand (Cont’d)Our integrated marketing strategy in both offline and online channels
SABINA@HOMEOffline Delivery Service
Sabina is a Thai lingeries brand leader in OD Service. Delivery to your home when an item at Sabina shop is out-of-stock.
SERVICE DEVELOPMENT
Improve service with online examine the performance evaluation of product consultant
Valentine Promotion -Love Delivery
Take photos with your beloved one and post on your social media to get THB 200 discount and win the lucky draw of surprisingly face to face greeting your loved one by Sabina&HITZ955 team.
CSR Promotion
Donation for disabilities children to Bann NontapumFoundation
26
Sabina Brand (Cont’d)Launching new product
27
Sabina Brand (Cont’d)TVC : Seamless
NSR
28
Partnership
วางไว้ก่อนยงัไม่ final ได้แล้ว เดยีวเอามาให้ มี Maybelline / Laneige / DSG
29
Growth Strategy in 2018-2023
Customer centric product development
Consistently introduce new products / collection that meet customers needs
Backed by state-of-the-art marketing activities (plan to invest 5-6% 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
SABINA PUBLIC COMPANY LIMITED www.sabina.co.th
AppendixSabina Public Company Limited
32
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 - 2017)
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
33
Sabina at a GlanceWide product offering with ability to capture broad group of customers
Budget (<THB350) Medium (THB350-700) Medium-High (THB700-1,000) High (>THB1,000)
Children(6-15 years)
Teens(15-25 years)
Young women(25-45 years)
Women( > 45 years)
Sabina at a Glance (Cont’d)
34
Highly penetrated and robust distribution network
ShopDepartment stores and
others
Modern Trade
Special Event
Distributors2018
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 5
Cambodia 3
Bangladesh 8
Pakistan 9
83 Shops 2-3 Events per quarter80 Department stores110 other channels
307 Modern trade
Traditional Store Retailing Channels
Non-stores Retailing Channels (NSR)
2 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 2018 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
2018 Store Total
Department store Central 23
Robinson 48
The mall 9 80
Modern trade Big C 130
Lotus 176
Makro 1 307
Shops 83
Other 110
Total 580