RS Plc yesterday announced a dramatic growth of 200 per cent year on year in its health and beauty business in the first quarter of this year.
The company remains optimistic of the economic outlook this year, but remain cautious as domestic demand remains weak as it recovers.
Darm Nana, chief financial officer, said that the ever- changing behaviour of consumers has always been both key risks and key opportunities for RS.
“We've proven ourselves to be very adaptive to any market circumstances. Multi-platform commerce (MPC), the new business endeavour of RS, is a living proof of our resilience. In the modern media world, it is not viable to rely on a single-engined business. This simply means being a regular TV channel operator will no longer be sufficient to drive earnings to the level RS is aiming for,”
“MPC model is derived from all platforms operating and partnering with RS, such as media (Channel 8, 4 satellite TV channels, Radio), online sales, retails and direct sales,” he said.
Darm said RS’s revenue in the first quarter of 2018 reached Bt969 million, up 30 per cent year on year. Meanwhile, the company’s net profit stood at Bt102 million, a 117 per cent growth compared to the same quarter of last year. The surge in performance was attributed to its multi-platform commerce (MPC) business, which grew 191 per cent in revenue and enjoyed significantly higher profits than its competitors, thanks to the addition of health and beauty products under brands Magique, Revive and SOM.
Meanwhile, it has also branched out to home and lifestyle products such as home appliances, kitchen appliances, and clothing. Repeat orders were seen in its existing customer base which kept expanding with new comers, reaching a new high on a monthly basis.
“Our revenue target for this year remains unchaged at Bt5.8 billion, consisting of 60 per cent from MPC business, media 35 per cent and 5 per cent from others. We now consider ourselves as a commerce company,” he said.
“We are always in search of new business opportunities, particularly those which could synergise with our core businesses. The current plan is to drive the MPC to reach a higher potential, given a large customer's database we have accumulated over the past few years, and the increase in the number of products (SKU) on offer through our platforms,” added Darm.
Furthermore, Darm said that with Channel 8 being the flagship of our media business, Number 2 prime time rating in the country and top 5 rating in evening prime time, advertising revenue nearly doubled in March, a new phenomenon despite a slow season for the media market. It has also secured long-term advertisement and sold advertising platforms as expected.
“Things are looking positive in the second quarter as both MPC and Channel 8 are still on track. The two businesses complement one another, and the company balances external advertisement and its own advertisement well. As a result, its platforms are maximised, generating higher profits for the company. The rising star of the company is the MPC business as the company partners with world-class labs to conduct research and produce high-quality products that meet international standard to meet various needs of consumers,” he said.
“It has been three years since we entered the health and beauty business with Life Star. We expect that it will be our main earner in the future. We are aware that health and beauty products must have high quality and be carefully produced,” he added.