Asian Alliance International Public Company Limited (SET: AAI), a leading Thai pet food manufacturer, reported outstanding Q3/2024 performance, with revenue growth of 37.8% and a net profit increase of 145% compared to the same period last year. This was driven by increased demand in pet food business, which remains the primary growth driver.
For the first nine months of this year, net profit surged by 283.4% compared to the same period last year, reflecting strong demand from major brand clients who launched new products tailored to owners seeking specialized pet food. The gross profit margin remains within the target of 20-21%. The company is confident that total revenue for this year will meet the target of THB 6,500 million, comprising THB 5,700 million from pet food business and THB 800 million from human shelf-stable food.
Production capacity expansion plans are progressing as expected. In August, the company commenced dry pet food production under the “Pro” brand and expanded capacity for canned and pouch-packed products, which will increase wet pet food production to 59,000 tons per year by Q1 next year.
Aekarat Punnasung, Managing Director of Asian Alliance International Public Company Limited (AAI), a leading Thai contract manufacturer of pet food and human shelf-stable food products, and owner of the brands “Monchou,” “Hajiko,” and “Pro,” which produce cat and dog food, announced that the company achieved revenue of THB 1,872 million in Q3/2024, an increase of 37.8% from THB 1,359 million in the same period last year, and a 9% increase from THB 1,717 million in Q2/2024. Revenue increased due to higher sales volumes in both pet food and human shelf-stable food.
Net profit for Q3/2024 stood at THB 289 million, a 145% increase from THB 118 million in the same period last year, but a 3.5% decrease compared to THB 300 million in Q2/2024. The gross profit margin was 19.1%, up from 16.1% in the same period last year, but down from 25.7% in the previous quarter. The net profit margin for Q3/2024 was 15.4%, compared to 8.7% in the same period last year and 17.5% in Q2/2024.
For the nine-month period, the company reported total revenue of THB 5,078 million, an increase of 28.7% from THB 3,945 million in the same period last year. Most of the growth came from higher sales volumes in pet food, while sales volumes in human shelf-stable food declined. Net profit stood at THB 831 million, an increase of 283.4% compared to THB 217 million in the same period last year.
The gross profit margin for the nine months was 21.8%, compared to 12.7% in the same period last year. This improvement was due to reduced raw material costs, lower sales volumes in human shelf-stable food (13% of total revenue, down from 20% last year), and reduced labor and energy costs. The net profit margin for the nine months was 16.4%, up from 5.5% in the same period last year, reflecting increased sales and improved gross profit margins.
Pet Food Market Growth
“For the past nine months, the pet food market has performed well, particularly in international markets, as major brand clients launched new products to meet the specific needs of pet owners. Most of these products are functional, promoting health, nutrition, or therapeutic benefits, which have gained more attention than other categories. As a result, we developed 52 new products for clients, comprising 34 for cats and 18 for dogs, in contrast, the domestic pet food market remained stable due to intense competition and consumer demand for value-for-money products.” said Aekarat.
Human Shelf-Stable Food Performance
Human shelf-stable food, especially tuna products, continued to perform well in Middle Eastern markets, particularly Saudi Arabia, supported by lower tuna prices.
Revenue Target and Strategic Goals
Aekarat stated that the company maintains its 2024 revenue target of THB 6,500 million, a 19% increase from THB 5,439 million last year. This includes THB 5,700 million from the pet food segment, reflecting significant growth, driven by steady demand from major brand clients in key markets, although sales of the company’s own brands in Thailand and China face challenges. The company plans to increase its branded product sales to 10% of total revenue by expanding distribution channels and implementing targeted marketing, as part of its long-term strategy.
Financial Liquidity and Strategic Plans
AAI maintains surplus cash flow and high liquidity, keeping financial costs low. AAI focuses its marketing budget on boosting sales rather than solely on brand awareness, while actively expanding distribution channels in Thailand to support long-term strategic goals.
Production Capacity Expansion and Investment Adjustments
In August, Asian Nutrition Co., Ltd., a subsidiary of ASIAN, began producing dry pet food under the “Pro” brand and is currently seeking more contract manufacturing opportunities. Additionally, production capacity for canned and pouch-packed products will increase by 1,800 tons per year and 1,200 tons per year, respectively. This will bring the total wet food production capacity to 59,000 tons per year by Q1/2025. The automation warehouse construction project has been postponed to 2025 due to design adjustments, reducing the 2024 investment budget to no more than THB 250 million, compared to the original THB 430 million.
