MC Group Public Company (MC) Q2 2025 earnings summary

Executive summary

• MC Group reported faster profit growth in Q2 FY2025 despite slower total sales growth year-over-year.

• The company operates in Thailand, focusing on manufacturing and distribution of clothing and accessories, with all revenues and assets in this segment.

• Major shareholder holds 46.04% as of December 31, 2024; no single customer accounts for 10% or more of revenues.

• The company maintains a strong financial position with zero debt and nearly THB 1.9 billion in cash and short-term investments.

• Online sales grew 47% year-over-year, offsetting a 6% decline in offline sales.

Financial highlights

• Net profit after tax (NPAT) increased 7.6% year-over-year to THB 305 million in Q2 FY2025.

• EBIT rose 2.5% year-over-year to THB 384 million, with EBIT margin improving to 28.4%.

• Gross profit margin increased to 65.1% in Q2 FY2025 from 64.0% in Q2 FY2024.

• Cash and cash equivalents increased to Baht 516.4 million as of December 31, 2024, from Baht 431.8 million at June 30, 2024.

• Basic EPS for the six months ended December 31, 2024: Baht 0.55 (consolidated), up from Baht 0.52 year-over-year.

Outlook and guidance

• Management targets continued growth in both offline and online channels, aiming for over 600 points of sale and more than 20% of sales from e-commerce by FY2027.

• Focus remains on expanding product categories, improving customer experience, and maintaining high margins.

• Operational efficiency initiatives are expected to further reduce expenses as a percentage of sales by FY2027.

• Adoption of revised Thai Financial Reporting Standards in 2024 had no significant impact; further amendments effective 2025 are under assessment.

• Management will adopt new standards on classification of liabilities, supplier finance arrangements, and leaseback transactions in 2025.