Sappe Public Company Limited (SAPPE) unveiled its performance in the first quarter of 2023, which was outstanding as expected with sales revenue of 1,520 million baht, increasing by 49.2%. The company also posted the net profit of 274.8 million baht, increasing by 79.1%. This was a result of the success in pushing SAPPE’s signature drink “Mogu Mogu” to become No. 1 in the fruit juice category in many countries worldwide, especially the key countries like France and South Korea. The company aims to increase sale channels constantly to push for the revenue target to grow 25% this year.
SAPPE Chief Executive Officer, Ms. Piyajit Ruckariyapong, said the company posted significant growth in the first quarter of 2023 with revenue of 1,520 million baht, increasing by 49.2% from 1,019 million baht in the same period in 2022. The net profit was 274.8 million baht, growing by 79.1% compared to 153.4 million baht in the same quarter of last year. The growth was another “All Time High” for SAPPE, thanks to the exponential growth in the foreign market, particularly in Europe with growth of 126.1%, followed by Asia at 47.2%, America 45.6%, and the Middle East 42.3% while the domestic market grew 15.0%.
Europe is considered a distinguished market for SAPPE, especially France where Mogu Mogu has created a wave of “Brand Love” and been crowned champion in the fruit juice category in many countries. Mogu Mogu’s strong point is it is a quality drink from Thailand which is tasty and gives refreshment and new feeling. This flagship drink also offers fun in drinking and chewing large pieces of coconut jelly which is Mogu Mogu’s uniqueness.
After the “France First” strategy became successful in expanding the consumer base in France, our next destination is France’s neighboring countries where we are able to increase the distribution channels. The item is not only on sale in China town or Thai town like other Asian products, but also the mainstream retail stores. SAPPE also plans to make its sale more comprehensive by expanding it to the other retail stores in order to deliver the delicious experience from the Thai quality product to as many as consumers as possible worldwide. This is, therefore, the pride of SAPPE to build this Thai brand under the management of Thais to become a global brand and allow foreign consumers to obtain our special experience which has been reflected in the past operational performances.
For the foreign market in the first quarter, the sale volume in France grew significantly due to our proactive strategy to conduct marketing in particular areas, targeting the children group to the first jobbers. The company also increased its outlets, made the shelves more outstanding and increased online promotions. SAPPE also made strong growth in Asia, especially in South Korea where it has become the No.1 drink. It was a result of the long and constant marketing plus recent implementation of “Global Influencer Marketing” by using the famous boyband BTS and sponsoring K-Drama series in Netflix. The company successfully expanded Mogu Mogu to become “Lifestyle Brand” in ZEPETO, Asia’s biggest metaverse platform which is very trendy among Gen Z. The product marketing in ZEPETO received a warm welcome from the users, prompting SAPPE to continue this strategy to Season 2 in order to communicate with more than 400 million ZEPETO users worldwide.
The SAPPE CEO added that “We have started seeing a good sign in the foreign market. In the first quarter of this year, SAPPE launched 7 SKUs of new products such as “Sappe Beauti Powder Stix” powder collagen as we are the first in Thailand to distribute powder collagen through the traditional trade with an affordable price; B’lue vitamin water in 2 flavors: Yuzu-Watermelon and Peach-Ume Plum to cool down in the summer; and Sappe Beauti Drink with special labels designed by the famous artist “give.me.museums” under the Summer in Love Limited Edition in 2 flavors: Summer First Love and Lucky in Love. Sappe currently has a proportion of domestic sales of 19.4% and international sales of 80.6%.”
“For the expansion of production capacity, we are currently in the process of increasing the production line that is expected to expand the production capacity by 30% and will gradually increase the production line by 30% each year from 2024-2025 in response to the rising demand both in Thailand and overseas. Regarding the progress of the smart warehouse which is controlled by computer and uses machinery in transferring products, we expect to complete it by early next year. The smart warehouse will significantly help reduce the cost of product distribution,” Ms. Piyajit said.