The share price of Exotic Food Public Company Limited (mai: XO) recovered in the morning session after ending Monday with a 18% drop as the market was concerned about lower market share as Huy Fong was reportedly back in the business of producing Sriracha sauce in the US after months of shortage.
Mr. Jittiporn Jantarach, Managing Director of XO, told Kaohoon that the company saw no significant change in purchasing orders even though Huy Fong Foods had been increasing its production 3-4 months ago.
The MD noted that there are no concerns regarding the report as he believed Huy Fong will not be able to return to its normal level due to persisting shortage of chili.
He stated that XO’s market strategy from the starting date in the U.S. was not selling to customers turning from Huy Fong to XO, while some of the trading partners were not dealing with Huy Fong as well. It is safe to say that XO penetrated the U.S. market with its own strategy and its own growth.
According to the MD, purchasing orders remained at the same level, while there was no cancellation, reflecting that stores in the U.S. still perform well with XO’s products.
Mr. Jittiporn noted that the company achieved its sales target for this year within the third quarter. This should reflect in the financial reports for the third quarter, expecting to come out on November 13, 2023.
As for the overall outlook, he expected sales growth this year to be more than 50% to around 2,400 million baht from new customer base, especially in the U.S.
As of 11:58 BKK time on Tuesday, the share price of XO was trading at THB29.00 per share, representing an increase by THB1.25 or 4.50%.
