SABINA reports H1’22 net profit of 210.9 million baht or 49.5% YoY increase. Board green-lights interim dividend of 0.61 baht per share. Continuous growth forecasted for H2’22.
SABINA is on a roll after announcing its H1 2022 operating results (January to June 2022), having earned 1,570.4 million baht in sales revenue, an increase of 265 million baht or 20.3% YoY, while the net profit stood at 210.9 million baht, an increase of 69.8 million baht or 49.5%, with the gross profit margin at 47.2%. The Board of Directors’ Meeting approved the payment of interim dividend at the rate of 0.61 baht per share, following SABINA’s Dividend Policy to pay at the rate of 100% of the net profit. As regards the H2 2022 outlook, SABINA is projected to keep on growing continuously owing to the gradual economic recovery which will influence purchasing power. Despite encountering uncertainties in the form of hiked interest rates, inflation, and volatile exchange rates, with SABINA’s efficient precision marketing strategies, the company will assuredly work toward its goal of 20% growth.
Ms. Duangdao Mahanavanont, CEO of Sabina Public Company Limited (SABINA), manufacturer and distributor of SABINA lingerie, revealed that SABINA’s H1 2022 operating results are deemed satisfactory as expected. The Board of Directors has approved the payment of interim dividend at the rate of 0.61 baht per share for the performance in the first half of the year ending 30 June 2022. The record date is 25 August 2022 and the payment date is 8 September 2022. The dividend payout ratio is 100% of the net profit based on SABINA’s policy stipulating dividend payment of no less than 40% of the net profit after tax and legal reserves.
The key factor contributing to the growth of SABINA’s results was the upward trend in purchasing power in line with the revival of the economy. The climb in sales revenues was achieved through all channels, namely the 22.2% increase in the retail channel, the 14.1% increase in the non-store retailing channel, and the 28.3% increase in the OEM channel. At the same time, SABINA forges ahead with its efficient cost control, aiming to maintain the growth of the gross profit margin as well as the net profit margin.
“In the first half of the year, we came across many challenging factors. Although purchasing power is improving progressively for both the Thai consumers and the tourists with more observable spending, but on the other hand, Q2 was a period of several uncertainties, particularly the surging energy prices. We found that the energy cost to sales escalated by about 15% when compared with the pre-pandemic year of 2019, ramping up raw material costs along with it. However, SABINA coped well with these factors, especially by adopting the lean methodology which enhanced the efficiency of our manufacturing system, helped us produce less waste, and effectively controlled costs. Also, in Q2 we still needed to tackle the spread of the relatively mild yet extremely contagious omicron strain of COVID-19, thus impacting our manufacturing activities as well as our gross profit margin only in Q2 (April to June), though the repercussions lasted for only a short period,” Ms. Duangdao said.
Looking forward to H2 2022, SABINA will continue to monitor the factors affecting purchasing power, namely the interest rate uptrend, the inflation rate, and the energy price trends which have eased somewhat at the end of Q2. Another thing to keep an eye on is exchange rate volatility, though SABINA is confident that the baht’s movement will not affect the company because of its status as both an importer who benefits from the baht appreciation and an exporter who gains from the baht depreciation. Given SABINA’s strategies of fast adaptation and increased flexibility, there is no concern over exchange rates. Moreover, considering the economic situation in the remaining months of 2022, SABINA’s efficient precision marketing strategies for fulfilling customer needs and quickly responding to consumer shifts, including the new campaigns and products to be launched in H2 2022, SABINA is absolutely positive that it will achieve the 20% growth target.