This may be the start of success harvesting for Sappe Public Company Limited (SAPPE) after sowing seeds worldwide for many years. In 2022, the company made consecutive new highs from the first to third quarters and ended the year with the most outstanding performance in its history. The sales revenue was 4,566.4 million baht, increasing by 32.6% while the net profit was 653.1 million baht, increasing by 59.0%, breaking record without stopping. The main factors behind the achievement was the rapid growth of Mogu Mogu, fruit juice mixed with coconut jelly from Thai farm products, which created ‘Brand Lover’ phenomenon in key countries like South Korea and France.
Sappe Chief Executive Officer Ms. Piyajit Ruckariyapong said the 2022 operational performance was excellent as the company was able to achieve all-time high growth again with sales revenue of 4,566.4 million baht, growing 32.6% compared to 3,444.16 million baht in the same period of 2021. The net profit was 653.1 million baht, increasing 59.0% from 410.81 million baht in the same period in the previous year and the net profit margin was 14.3%, up from 11.9% in 2021. The company set new records incessantly since late 2021 and reached an all-time high in revenue. This reflected the strong performance in the international market by the SAPPE team and its business partners worldwide, building confidence in the products under the SAPPE brand and receiving acceptance from consumers around the world.
The achievement of this performance was a result of the growth of the foreign market with products exported to 98 countries around the world. The proportion of revenue from the foreign market was 77 percent of the total revenue, thanks to an expansion of the customer base and addition of various distribution channels in the modern trade and traditional trade as well as online to offline marketing in some countries that helped significantly increase the purchase orders worldwide. The most popular product in the foreign market was SAPPE’s signature drink Mogo Mogu, fruit juice mixed coconut jelly, and Sappe Aloe Vera Drink, juice with aloe vera pulps, distributing in the markets with high potential growth which are countries in Europe, the Middle East and Asia such as South Korea and the Philippines.
And the most distinguished destination in the foreign market in 2022 was France with 285.4% growth and Mogu Mogu received overwhelming welcome from French customers. The positive feedback in France also accelerated the sales in other European countries. In the past year, the company expanded distribution channel into the modern trade by increasing product distribution to cover and to enter Europe with the business model similar to the one in France. Hence, the “Mogu Mogu Fever” is the pride of a Thai brand which successfully obtained acceptance in key countries of Europe.
South Korea is another country which made Sappe proud with unceasingly high growth to become the top drink in the country stronger than before. In 2022, SAPPE penetrated the South Korean market with “Global Influencer Marketing” by using BTS band to promote Mogu Mogu in Run BTS program. The company also built Mogu Mogu to become a lifestyle brand, targeting Gen Z around the world through “ZEPETO”, the biggest Metaverse platform in Asia.
The SAPPE CEO said that the company will continuously build on the success in 2023. The latest move was being one of the partners to sponsor the huge popular TV series “Crash Course In Romance”, which is the newly top series in South Korea.
The Crash Course In Romance K-drama was listed in Netflix’s top 10 in several countries in Asia and the Middle East. It has been the No.1 series on TVN, South Korea’s local television channel, and TVing, the global online streaming service operated by TVN.
Regarding the domestic market, SAPPE is ready to continue inventing and developing new products and will launch at least 20 new products this year. The products will be distributed in both domestic and foreign markets in order to serve the consumers’ needs and increase the sales to bolster the performance target of no less than 25% growth in 2023.