Sappe PCL (SAPPE) announced its 2021 performance with a net profit of 410.2 million baht, increasing by 6.3% while the total revenue reached 3,712.8 million baht, growing by 11.8% from the previous year. Both figures are the highest ever growth since the establishment of the company. The company sets this year target of 15% growth and to expand foreign markets following a demand recovery. The proactive marketing strategy “O2O” or Online to Offline marketing will be continued from last year to enhance the foreign market growth.
Sappe Chief Executive Officer, Ms. Piyajit Ruckariyapong, said the 2021 performance had a significant growth with revenue of 3,712.8 million baht, an increase of 11.8% comparing to 3,320.9 million baht in the previous year while the net profit was 410.2 million baht, growing by 6.3% from 385.9 million baht in the previous year. The rise was mainly a result of the growth in the foreign market, thanks to a continuing increase in orders from all regions.
Another factor behind the outstanding performance was the introduction of the O2O strategy or Online to Offline marketing, a mixture of online and offline marketing to boost the sale volume. This marketing strategy started in Asia to bolster the sale and create a momentum in spending, and received positive feedback from consumers. The European market was boosted by an expansion of sale channels in major modern trade distributors. The favorite products in the foreign market included Mogu Mogu, a fruit juice drink with coconut jelly, and Sappe Aloe Vera Drink, a refreshment with aloe vera pulps.
Regarding the situation in the foreign market which has been economically affected by the COVID-19 pandemic, the company was able to create and develop various innovative products to respond to the so-called “new normal lifestyle.” Sappe also created new products with its partners which received overwhelming feedback from consumers. The “Hero products” are Kru Pensri candy and Sappe Beauti Drink in the less sweet series.
“Our exporting market has grown every year since 2018, except for 2020 when all regions in the world were hit hard by the COVID-19 pandemic. We believe we have overcome the problem in all countries. In 2021, we made a new high in total revenue in the foreign market sale and the highest ever net profit since the company was established,” she said.
“The container problem and an increase in the freight fees did not significantly affect the company’s operation because we prepared management plans with our partners in the fourth quarter of 2020. However, the company encountered difficulties to find containers and ships in December which was a holiday period, so part of the sale in that month was recorded in January 2022.”
“For the cost of goods sold compared to the sale volume, the company did better than the previous year by 2.6%, thanks to our efficient management plans in production and other parts as well as cost-saving projects to reduce the overall cost. We still set a target to continually reduce the overall cost this year.”
The Sappe CEO added that the company expected a continuing growth in the foreign market after an increase in demand as the sale volume rose from the previous year. The growth target is set at 15%, mainly in the foreign market which has the potential to grow in the future.