Ichitan Group Public Company Limited (ICHI) Sets Ambitious Revenue Targets
By: InfoQuest News Agency (09 Nov ’23)
Managing Director of Ichitan Group Public Company Limited, Mr. Tan Passakornnatee, has announced the company’s revised revenue target at 7,800 million baht, representing a substantial 23% increase from the previous year. Furthermore, the company is aiming to achieve sales of 10 billion baht by 2025. This optimistic outlook is attributed to strong sales growth, effective product mix management, and efficient production cost control.
In the third quarter of 2023, Ichitan reported a 25% increase in revenue, reaching 2,077 million baht, and a remarkable 71% increase in net profit, amounting to 328 million baht. These results mark a significant milestone for the company, with gross profit margins reaching 25%, up from 20% in the same period last year. For the first 9 months of 2023, Ichitan’s revenue grew by 26% to 5,939 million baht, while net profit surged by 80% to 805 million baht.
The company attributes this success to the strong performance of its ready-to-drink green tea, which has shown remarkable sales growth in modern trade channels and showrooms. The ready-to-drink tea market in Thailand has experienced substantial growth, surpassing other non-alcoholic beverage categories in terms of volume and value. Ichitan’s range of cold drinks, alkaline water, and healthy alternative products within the Healthy Trends group also contributed to this upward trajectory.
Furthermore, Ichitan’s contract manufacturing business (Ichitan OEM Service) is gaining traction, with partnerships such as the IF brand contributing to the company’s export revenue. The third quarter of 2023 saw an impressive 48 million baht in OEM business revenue, and prospects for exceeding the 100 million baht target are promising.
On the production front, Ichitan’s production capacity utilization reached 79% in the third quarter, the highest in the company’s history. To support this growth, Ichitan is installing a new production line with an additional capacity of 200 million bottles per year, set to begin operations in the fourth quarter of 2024. This will increase the total production capacity to 1,700 million bottles per year, reinforcing the company’s readiness to capitalize on new market opportunities.
In anticipation of potential increases in sugar prices, Ichitan has proactively developed drink recipes with reduced sugar content and maintained tight control over production costs. As a result, the company remains resilient in the face of market price fluctuations.
Tags: ICHI, Tan Passakornnatee, Thai stocks, Ichitan Group
Stock news 10:03 am 2023-11-09
Mr. Tan Passakornnatee, Managing Director of Ichitan Group Public Company Limited (ICHI) Mr. He revealed that the company has revised its revenue target to reach 7,800 million baht, or an increase of about 23% from last year, along with moving towards sales of 10 billion baht within 3 years (2025). In terms of profit this year, there is support from Growing sales, good product mix management, and efficient production cost management Therefore, it is expected that there will be an opportunity this year to see net profit reach 1,000 million baht again in 9 years.
The operating results for the 3rd quarter of 2023 produced revenue of 2,077 million baht, an increase of 25% and net profit of 328 million baht, an increase of 71% from the same period last year. Setting a new high in 30 quarters again. The gross profit margin grew to 25% compared to the same period last year where the gross profit margin was 20%, pushing the performance for the first 9 months of the year 2023 (January-September) and produced revenue of 5,939 million baht, an increase of 26% and net profit of 805 million baht, an increase of 80%.
An important factor comes from the success of the drinks business in the country. Show sales of ready-to-drink green tea can grow Selling well in modern trade channels and showrooms at the end of September 2023, creating a new phenomenon with the ready-to-drink tea market in Thailand RTD Tea is growing strongly, surpassing the market for other types of non-alcoholic drinks, in terms of volume and value Data from the retail figures of The Nielsen Company (Thailand) during the first 9 months of this year The ready-to-drink tea market worth 12,329 million baht, growing to 18.75%.
Meanwhile, the cold drinks, alkaline water, and healthy alternative products in the Healthy Trends group continue to grow. On the new Korean-style hot soft drinks, “Tansan Soo” releases a promising new product, “Tansansoo Honey Lemon,” the fourth flavor to shake the youth market in October. Stimulate the market at the end of the year to continue growing. Including the contract manufacturing business (Ichitan OEM Service), which is currently working with a main partner, the IF brand, which has come to strengthen the team. Exporting products to foreign countries Push the revenue from the OEM business in the 3rd quarter of 2023 to 48 million baht. This is another flagship that comes to support. and is expected to definitely exceed the target of 100 million baht
On the production side, in the third quarter, Ichitan’s production capacity utilization (Rate of Utilization) increased to 79%, the highest since the company was founded. This is because sales in the drinks business are growing strongly. Until production could not be produced on time, some orders had to be cut to use contract manufacturing (OEM) services to support increased sales. Together with the installation of a new production line with an additional production capacity of 200 million bottles / year, production is expected to start in the 4th quarter of 2024, which will increase the total production capacity to 1,700 million bottles / year (from the 1,500 million existing bottles / year) creating a willingness to support new market opportunities. New demand will continue to increase in the future.
For the issue of sugar prices that may increase. Ichitan has prepared to the best of his ability for more than 2 years by developing drink recipes to significantly reduce the amount of sugar. When combined with increased production capacity control of 79%, resulting in a significant reduction in cost per bottle control. In the current situation, it can be said that the price of sugar that may increase in the market has little effect on Ichitan.
By InfoQuest News Agency (09 Nov ’23)
Tags: ICHI , Tan Phasakonnatee , Thai stocks , Ichitan Group
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