Do Day Dream enjoys 6-month revenue growth of 24.1% in 2017 IPO planned to raise funds for production capacity and distribution channels expansion, RD facilities improvement

Business Press Releases Monday October 9, 2017 12:02
Bangkok--9 Oct--Ogilvy Public Relations

Do Day Dream Public Company Limited, the producer and distributor of SNAILWHITE skincare products with sales revenue of over 1.2 billion baht in 2016, reported a strong performance for the first half of 2017 with net profit reaching 209 million baht which is mainly attributed to the addition of new product lines, effective marketing strategies and an overwhelming response in the premium mass market in Thailand and overseas, especially China.

With the excellent figures, the the company is ready to move forward with its initial public offering (IPO) plan to raise funds to support expansion of production capacity and distribution channels as well as research and development (R&D) improvement to cope with the rapidly growing beauty and skincare market across Asia. Do Day Dream hopes the plan will enable it to achieve its goal of becoming one of Asia's top three beauty companies.

Dr. Sarawut Pornpatanarak, Chief Executive Officer, said: "Do Day Dream is the producer and distributor of high-quality skincare products. Our two main businesses are the production and distribution of SNAILWHITE skincare products under our own trademark NAMU LIFE, launched in 2013 and has become the top of mind brand ever since, and OEM (original equipment manufacturer) business where we produce skincare products for other small brands.

"In addition to our expertise and experience in the skincare market, our key strategies contributed significantly to our success. A key strategy is to build SNAILWHITE into a top-of-mind brand among a larger group of consumers under the 'Beauty is Healthy' concept. Other strategies include distribution channel expansion, creative marketing with a focus on online media and the use of superstar presenters, and attention to product quality. We have also focused on innovations that improve product efficiency. We have carefully selected the best ingredients and packaging designs. All these have contributed to rapid sales growth as we saw our revenue increase from millions of baht to over a billion baht within only three years from the day SNAILWHITE made its debut in 2013.

"More importantly, our management team of young executives with vision and high experience in the skincare market has also given us greater confidence to become one of the top three leaders in Asia's beauty product market as stated in our vision."

The SNAILWHITE product portfolio covers six categories: facial skincare, body skincare, facial cleansing, body cleansing, sunscreen and gift sets. All 20 products are highly popular among consumers, especially NAMU LIFE SNAILWHITE Facial Cream, which has been the best seller among facial skincare products sold in large-scale retailers consecutively from 2015 to the second quarter this year. SNAILWHITE products are available through over 10,000 shops in both modern trade and traditional trade as well as online shops, NAMU LIFE shops and overseas distribution channels.

Ms. Saowakon Pornpatanarak, Deputy Chief Executive Officer, amplified on the SNAILWHITE growth opportunity.

"Skincare has very strong growth potential due to the rising health and beauty care trend. In Thailand, skincare was ranked as the one of the top rising star industries in 2016 by Thai Chamber of Commerce University. In addition, this trend is enhanced by the fact that Thailand is becoming an ageing society. This opens a new opportunity for us to grow our market through new products that better match specific needs, such as anti-ageing and men's skincare product lines. Growing online shopping behavior also expands our ability to reach consumers without limit."

In terms of overseas markets, the company also has strong competitive advantages. Its products have been well received by consumers across Asia. SNAILWHITE has become one of the most sought-after souvenirs from Thailand among Chinese visitors. Seeing this trend, Do Day Dream is committed to market expansion in Asia, especially in China where the skincare market is growing by 17% per annum. The company is implementing both short and long-term strategies, including the introduction of exclusive products for the Chinese market and cooperation with partners to improve production, management and distribution, according to Ms. Saowakon.

Mr. Piyawat Ratchapolsitte, Chief Financial Officer, said Do Day Dream has grown strongly in terms of performance in the past three years. Its sales revenue jumped from 438 million baht in 2014 to 1,202 million baht in 2016, representing a compound annual growth rate (CAGR) of 65.6% per year.

In the first six months of 2017, the company continued its significant growth rate with 872 million baht in sales revenue compared to 703 million baht in the same period last year, or a 24.1% increase. Sales from the international market in the first half of 2017 stood at 332 million baht, a significant increase from 72 million baht in the same period of 2016. This is clear evidence of its rapid growth in overseas markets.

Meanwhile, the company's profit rose from 28 million baht in 2014 to 335 million baht in 2016, representing an enormous CAGR of 248.8%. The company's net profit margin increased from 6.3% in 2014 to 27.8% in 2016. For the first six months of 2017, net profit was 209 million baht, a slight drop from 213 million baht in the same period last year due to increasing sales expenses, especially advertising and sales promotions.

Looking ahead, the company expects to see strong sales growth in all product categories. This reflects its competitive advantages in its major product segment of facial skincare and long-term revenue growth driven by growing sales in other product categories.

"We have seen rapid growth in customers' demand both vertically, with more product variety and consumption volume, and horizontally, with an increasing number of customers in Thailand and foreign countries. To increase our capability to meet this demand, we have decided to initiate our IPO plan to allow the general public and investors to join us in driving further growth for the business. Under this plan, 76,000,000 shares will be offered," said Mr. Piyawat.

Do Day Dream submitted a filing to the Securities and Exchange Commission in August 2017. Bualuang Securities Pcl is working as its financial advisor and lead underwriter for this transaction. Funds raised from this plan will be used for expanding the company's plant in Rojana Industrial Park in Ayutthaya province and to increase distribution channels both in Thailand and across Asia. Funds will also be used to support business expansion, such as development of the R&D department, office expansion and revolving working capital.

"We are strongly confident of Do Day Dream's potential to reach a new milestone by achieving our goal to become one of the top three leaders in Asia beauty market. At the same time, we will increase our ability to create strong yield and growth after this fund mobilization," said Mr. Piyawat.

After the IPO, the company's shareholding structure will be changed. The Pornpatanarak family's stake will be changed from 93.2% to 70.8%. North Haven Thai Private Equity Clarity Company (HK) Limited, managed by Morgan Stanley, will see its stake slightly reduced from 6.3% to 4.7%. Other shareholders' stakes will be changed from 0.6% to 0.4%. The general public will hold 24.05% after the IPO.

Interested persons can find more information and updates from Do Day Dream Pcl at www.dodaydream.com.
Do Day Dream … We Do to make every Day your Dream.

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