i-Tail Corporation PCL. (SET: ITC) reported its business results for the last quarter of 2023, with total sales revenue reaching THB 4,748 million, marking a 19 percent increase, along with a net profit of THB 767 million, also up by 19 percent compared to the previous quarter. This represented a 13 percent growth in net profit for the fourth quarter compared to the same period in 2022, driven by increased order volumes from leading pet food brands in many regions worldwide. The company’s total sales revenue for 2023 amounted to THB 15,577 million, with a net profit of THB 2,281 million as signs of industry recovery started in the third quarter of the year. The company paid a dividend for the second half of the year at THB 0.35 per share, making the full-year dividend THB 0.60 per share, and the company continues to maintain a consistent dividend yield at the rate of 2.8 percent.
Pichitchai Wongpiya, CEO at i-Tail Corporation, said, “Throughout 2023, pet food manufacturing businesses around the world faced significant challenges. This was a result of pressure from the industry headwinds and inventory destocking from the customers who were the world’s leading pet food brands. These factors led to decreased orders from customers for i-Tail’s business operations during the first half of the year. Nevertheless, the company witnessed signs of recovery, with order volumes from customers gradually increasing since the third quarter, resulting in the company’s income increasing during the last quarter of the year. But it is still lower than the total sales of 2022, which were higher than normal levels. And the company remains committed to strengthening the business in line with the growth trend of the pet food industry.”
“Even though i-Tail has faced obstacles and challenging times in 2023, such factors affecting our business operations have presented important opportunities for learning and gaining experience in adaptation. We have accelerated the creation of positive change by adjusting our work processes and enhancing production efficiency. This includes the development of our products and services to meet the needs of customers worldwide and support the fast-growing trends in premium and humanization of pet food products across many regions. Additionally, the company has been studying and developing food supplement products for pets, with the goal of introducing these new products to the market by 2025.”
In addition, in 2023, i-Tail established subsidiaries named i-Tail Europe B.V. (ITE) in the Netherlands and i-Tail Pet Food (Shanghai) Limited Co. (ITS) in China, to move forward with the strategy of expanding business operations and accelerating growth into the pet food markets in Europe and China. Moreover, the company successfully secured commercial contracts with 31 new customers worldwide, including a large global pet food brand in the U.S. Focusing on private label, the company started business with a leading retailer in France and having doubled sales in private label products initiated with one of the biggest national retailers in the U.S. in the previous year.
Furthermore, i-Tail elevated business standards by inaugurating ‘i-Cattery’, the cat food research center located at Mahidol University, Salaya Campus, in mid-2023. This center serves as a focal point for collaborative research effort involving the education sector, customers, business partners, and various stakeholders. Our goal is to enhance competitiveness and achieve global recognition for i-Tail’s cat food products, ensuring they embody the highest quality, adhere to global research standards, guarantee safety, and achieve international certifications. In addition, the company has continued to strengthen its business by constructing a new factory in Samut Sakhon province since the end of 2021, with the aim of increasing production capacity for pet food products and wet pet treats by an additional 18.7 percent with an automated production system. The expansion is expected to be completed, commencing production in the second quarter of this year.
In terms of total sales in 2023, i-Tail had a proportion of sales in the Americas at 50 percent of total income, while Asia and Oceania accounted for 37 percent, and Europe for 13 percent. Moreover, the proportion of sales can be divided according to three main product categories: cat food at 70 percent, dog food at 15 percent, pet treats at 12 percent, and other at 3 percent. The company has also launched more than 1,300 new high-quality pet food products to the market.
Last but not least, i-Tail remains committed to operating a business that places importance on sustainable development in line with the SeaChange® 2030 strategy. By 2030, the company emphasizes the importance of responsible sourcing raw materials for all chicken meat, as well as ensuring that raw materials in all the soybean and soybean oil are from deforestation and conversion free supply chain.
“In 2023, despite overcoming many obstacles, i-Tail remains dedicated to enhancing our capabilities and expertise to solidify our position as one of the global leaders in the pet food manufacturing industry. We are committed to operating our business with the aim of maintaining an average sales growth of 15 percent per year between 2023 and 2025. Additionally, we aspire to play a vital role in driving the pet food industry towards sustainable growth in the future,” concluded Pichitchai Wongpiya.
