Kittipong Limsuwanroj Mr. CEO and President of BBGI Public Company Limited revealed that BBGI’s growth in the past admittedly was slower than planned. An important factor comes from geopolitical changes. Make the business partners who have spoken to them. Investment has been delayed.
“A year ago, various plans were somewhat delayed. One of these is our bad luck. by after entering the IPO The war between Ukraine and Russia decision-making various partners must wait for clarity This affects the growth of the company not according to plan.
Set a goal to increase new business revenue
The company’s growth plan The goal within the next 5 years, our goal is to have at least 50% of EBITDA in the next 5 years up to 2023-2028 as a new business. and biotechnology
We believe that what we are doing will meet the needs of the world in the future. have a chance to be in some group such as drugs and medical supplies that the world needs more in the future more population but less food due to the restriction of less planting area, problems with water and the environment How to find food for enough people? So biotechnology is to solve the problem.
BBGI expertise We have been in the ethanol business for 20 years, which has been extended to the biotechnology industry. By growing our Joe will do it with partners with potential people. Because we see that Thailand needs information in this area that we don’t have yet. We rely on partners with knowledge and we are working to expand production capacity.
In the past, after entering the IPO We have invested jointly with Manus, a foreign partner. in which we invest as business partners And set up a company together, where BBGI will operate in the field of marketing. Setting up distributors in 5-6 countries, which encountered Covid-19 in the past, there was some slowdown. Now there is an increase in production capacity. which is slower than expected But the signal started to be good and started to settle more.
Expect new partner deals to close in the second quarter
In addition, BBGI is also talking to 3 partners, expecting to conclude 1 of them, expected to finish in the second quarter of this year, which will be a joint venture to establish a factory in Thailand. We will be in the production area. how to manage marketing The alliance will improve the knowledge and benefit of being a supplier in the region. However, if the deal falls through, the factory construction period may take up to 1 and a half years, but we will not wait for the factory to be completed. It will start marketing to the public first online and offline
Ethanol – Regeneration of Biodiesel
In terms of revenue and profit direction, it still comes mainly from the original business, which is ethanol and biodiesel, with the industry picture, biodiesel and ethanol, where the original business is quite seasonal. Which in our industry in the past has many problems and many losses. of a high cost problem But the direction in 2023 is expected to be better. According to government policy, it is expected that the use of biodiesel will be adjusted from B7 to B10 after the election due to lower agricultural product prices.
In its traditional business, BBGI does not limit itself to only biodiesel and ethanol, which must add value. In the past, in the Bangchak group Announce biojet by bringing used vegetable oil to be used as B 100. Today we announce that we are investing by using the Bangchak factory Generally, used vegetable oil is used to production that Bangchak can produce better and maybe in the future consider moving on Changing from ethanol to biojet we have the advantage of having a lot of ethanol it can be used as raw material as biojet we are looking at this should we continue
Bangchak buys Esso, positive results
Regarding the acquisition of Esso (Thailand) Public Company Limited or ESSO from Bangchak Corporation Public Company Limited or BCP, entering into such a transaction creates a positive image with the business of the parent company that can create more collaboration in the future On this time, ethanol and biodiesel that BCP uses are ingredients of BBGI products. In the future, if this deal ends, we will benefit. The opportunity to distribute more biodiesel and ethanol to the BCP group is considered an advantage for the company. must see in the future
Want investors to take a long-term view
However, what I would like to say to investors is that what BBGI is doing is creating a trend that must grow more and more after this. depending on the incoming project we do I want you to look at us for 3-5 years, look at past long term investments
The problem today, we have a business that is NEW S-CURVE and the national infrastructure of the country is what the government has announced to support. So we find a partner. Make us grow faster What I would like to say to the shareholders, a stable company, we want to be a biotech. that helps create added value is what we have to create
In addition, we are looking at investment opportunities. in health and wellness If there is an opportunity to come in, we are interested. If there is a deal, he is ready to invest. We are already financially strong.
“The definition of the last year must be exhausted. The situation that is happening is The stock market is all down. We still cannot fulfill that hope. Want to do it faster through BBGI walking in the biotechnology line We walk a long and difficult path. We are investing for the long term.”
The board didn’t want anything short term. Our difficulty is how to make it concrete and understand the market. The industry understands that we are the leaders in this business. It is good for the country and the region if it can happen.