Sappe Public Company Limited (SAPPE) has made another outstanding performance in the second quarter of 2023 with total revenue of 1,692.7 million baht, growing 26.8%, and posted the net profit of 312.3 million baht, increasing by 86.7%. The latest success pushed the total revenue to reach 3,248.3 million baht and a net profit of 587.1 million baht in the first half of this year. It was another ‘All Time High’ for SAPPE in creating market expansion domestically and internationally plus notable sales volume. The company, therefore, announced 30-35% revenue target surge for this year.
SAPPE Chief Executive Officer, Ms. Piyajit Ruckariyapong, said the operating performance in the second quarter reached another record high with total revenue of 1,692.7 million baht, growing 26.8%, compared to 1,334.5 million baht in the same period last year. The second quarter’s net profit was 312.3 million baht, up 86.7% compared to 167.3 million baht the previous year. The Q2 performance has led to outstanding results in the first half of 2023 (January-June), with total revenue of 3248.3 million baht, increasing 31.2% from 2,475.7 million baht from the same period of 2022. The net profit was 587.1 million baht, increasing 83.1% compared to 320.7 million baht. The net profit margin in the first half of this year was 18.8%, up from 13.5% in the same period last year. The remarkable result was marked as another ‘All Time High’ for SAPPE, thanks to the significant sales growth domestically and internationally.
SAPPE exports products to 98 countries worldwide, with the proportion of international sales accounted for 82.9% of the revenue. The key market that grew exponentially in recent years was Europe, particularly France, where the sales volume in the second quarter of 2023 increased over 160% from the same quarter of 2022.
“We saw France as ‘Trend Setter’ and created France First model, which was proudly successful. If anyone visits France these days, they will see Thailand’s Mogu Mogu extensively on shelves in various stores, both modern and traditional trade. We catch sight of significant growth and the opportunity to distribute products more inclusively; therefore, we plan to distribute the product in other retail stores in France and neighboring countries, allowing the consumers to access Mogu Mogu more in the second half of this year,” Ms. Piyajit said.
The SAPPE CEO added that the company has been trying to encourage consumers to engage more with the brand. From the consumer behavior studies: Consumer Insight and Consumer Lifestyle, aside from France First we implement with the European consumers, we also use Korea First to boost sales in Asia. The Korea First model has been implemented through a ‘Global Influencer Marketing’ strategy and tie-in in Korean series streaming on Netflix, resulting in regional and global viral for the flagship item. It built on the success of Mogu Mogu, which is at the top spot of sales volume in the fruit juice category distributed in Convenience Store (CVS) channel covering the modern trade in South Korea. More importantly, we aim to build France and South Korea to become ‘Main Influencer’ in each region and will continue in the second half of the year. The consumers will see Mogu Mogu’s new themes, which will be launched more in regional campaigns.
Mogu Mogu has been receiving a very warm welcome from the foreign market as it is a unique item. We are the world’s first brand to launch fruit juice mixed with big pieces of coconut jelly, so-called ‘Snack Drink’, and gradually conducted a market validation and sought the customers’ response before implementing intensive marketing and expanding sales channels comprehensively to access the consumers. SAPPE also tried to encourage the consumers to engage with the brand. Currently, foreign consumers accept food and beverages from Thailand, so there is room for us to carry out the marketing and increase sales volume.
The foreign market is still on the rise, especially in traditional trade in which we have expanded the sales channel into schools and launched 10 new brand items over the past six months and have received positive feedback from the consumers.
“For the operating outlook in the latter half of 2023, we expect constant growth driven by the increase of domestic and international sales. As the second half of the year is summer in foreign countries, we prepare to develop new products and launch them in both domestic and international markets to respond to the consumers’ need. The heart of inventing SAPPE’s innovative products is to seek value adding to the output of Thai farmers and grow sustainably together, and we will see these things more in the future. With the positive trend and growth mentioned earlier, we decided to increase the 2023 revenue goal by 30-35% from the previous target of 25% to achieve the plan in lifting the revenue to achieve 10 billion baht within five years (2022-2026),” Ms. Piyajit added.