Beauty Community plan eyes handsome returns

Beauty Community plan eyes handsome returns

SET-listed Beauty Community Plc (BEAUTY), a cosmetics company, targets average revenue growth of 20% for its five-year business plan, supported by overseas market expansion and growth of distribution channels.

This year's minimum revenue target is 4.29 billion baht, with growth supported by a "fast and smart" business strategy focusing on expanding all distribution channel platforms at home and abroad, said chief executive Suwin Kraibhubes.

Net profit growth is also expected to be 20% per year, said Mr Suwin. Revenue is anticipated to reach 10 billion baht in 2022 and the company's market capitalisation is targeted at 100 billion, he said.

"We plan to enhance our brand to be the leader in Asia, with sustainable operating results growth," said Mr Suwin.

"As with many other Thai cosmetics, our brand should be noticed by consumers across Asia."

The company's revenue in the third quarter totalled 2.64 billion baht with a net profit of 821 million. Market capitalisation was logged at 64 billion baht as of Jan 26.

The company's 120 million baht investment entails launching new branches worth 80 million, with improvements in infrastructure and business intelligence making up the rest.

He said Beauty Community has an aggressive overseas marketing strategy, focusing on shop and product branding to draw in customers, especially in Southeast Asia.

The expansion plan consists of establishing licensed shops and easy-to-access distribution channels in the form of offline and online retailers, helping the company gain a foothold in Asean, as well as China, Hong Kong and Taiwan, said Mr Suwin.

He said the company plans to add 13 more licensed shops to its existing 21 branches in three countries -- Vietnam, the Philippines and Myanmar -- by year-end.

The "Shop in Shop" branches will be introduced in Cambodia and Malaysia, with five distribution channels designated for each country.

The company is aiming for 145 distribution channels in six Asian countries under the "Shop in Shop" model by year-end, said Mr Suwin.

"In 2018, the cosmetics market is expected to thrive due to good economic conditions," he said.

Beauty Community's focus on varied distribution channels is intended to meet the needs of both local and overseas customers, said Mr Suwin.

Do you like the content of this article?
COMMENT