The share price of Taokaenoi Food & Marketing Public Company Limited (SETL TKN) hit the ceiling at the opening bell on Thursday as buying pressure poured in after the company reported more than 800% increase in 3Q22 earnings.
Trading volume as of 11:44 local time in Thailand was at 72.3 million shares, TKN’s highest in almost one year since December 2021 that recorded 110 million shares a day.
TKN announced earlier this morning that it had THB 180 million of net profit in the third quarter of this year, representing an increase by 834% from the same period of last year and 15% from the previous quarter.
| Quarter | 3Q22 | 3Q21 |
| Net Profit (Loss) Million Baht |
179.97 | 19.25 |
| Earning Per Share (Baht) |
0.1300 | 0.0100 |
| % Change | 834.76 | |
| 9 Months | 2022 | 2021 |
| Net Profit (Loss) Million Baht |
313.56 | 97.70 |
| Earning Per Share (Baht) | 0.2200 | 0.0700 |
| % Change | 220.96 | |
The company had revenue from sales in the third quarter of THB 1,208.7 million, an increase of 45.5 percent compared to the same quarter of the previous year. TKN stated that it was able to generate the highest sales since the pandemic started in 2020, representing a solid growth in both domestic and international markets from new products, particularly roasted seaweed, coupled with growth from expansion of channels, particularly in international markets, e.g., USA, Malaysia and Vietnam, with significant growth this year.
The company noted that such growth was due to both external factors from the mitigation of COVID-19 situations, causing consumers to start spending and the number of tourists to gradually increase, and internal factors of the Company focusing on enhancement of its production efficiency along with management of sales promotion and marketing expenses with maximum effectiveness among target consumer group, both online and offline channels.
In the third quarter, the Company’s domestic sales accounted for 37 percent against 63 percent of international sales.
In the third quarter, the Company has gross profit of 368.6 million Baht representing 30.5 percent of revenue from sales. The ratio of gross profits to sales revenue is increased by 11.3 percent compared to the same quarter of the previous year (increased by 4.1 percent from Q2/2022). The significant increase in gross margin was due to improved management in various aspects, both in terms of growth in sales in the third quarter which increased by 45.5 percent, resulting in increased utilization of production capacity and more efficiency, and thereby causing the unit production costs to reduce, and optimizing the reduced unit labor costs from machinery implementation at full capacity.
