Dr. Worawat Chinpinkyo, CEO and Director of Thai Coconut Public Company Limited (SET: COCOCO) revealed that the company’s overall performance for 4Q24 will grow according to the plan, supported by large order from its coconut-related segment such as coconut milk, a strong pet food business that will realize a full quarterly revenue in cat food, and OEM business.
Additionally, in 2024 especially in 4Q24, the company has frequently hosted an event showcasing its product in overseas countries like France, Saudi Arabia, the United States, China, etc. The event featured new products that would be available in 2025 with great success, furthermore, the company also released a new product into both existing market and new, which Thai Coconut has expanded to more than 100 countries worldwide.
Thai Coconut has superb performance in the first nine months of 2024, with a total revenue of THB 4,886 million, increasing 49%, and a net profit of THB 603 million or 72% gain. The company is highly confident that 2024 will have a 30-40% surge in revenue, while also scoring a higher margin, reflecting the company’s effort of foreign expansion. Presently, overseas sales account for 90% of the company portfolio and production capacity, especially since coconut juice and coconut milk are trendy abroad.
The company also saw steady growth in the pet food business and the company began expanding into foreign markets, driven by new products that encompass dry and wet food for cats and dogs to support growing demand. The company is also able to efficiently control cost and expense, which prompted gross profit margin and net profit margin to a high level.
As for Thai Coconut’s plan for 2025, the company is assured to push total earnings to 40-50% growth from 2024, utilizing the expansion of the beverage sector, new products such as coconut juice for athletes, Thai tea, green tea, coconut, and mixed juice soda, etc., and pet food business, which recently received new major customers from United State and Australia adding to the portfolio. Thai Coconut plans to expand these sectors to more than 30 countries from the existing 26 countries (in Thailand, there are more than 600 shops in both retail and online).
In the case of this year’s Aromatic Young Coconut price surging to a record high in five years, the company has had stocks of the coconut for at least six months, which dampened the impact, currently, the prices have begun falling down. The company bought 20-30 rai (32-48 sq. km.) of land to build a new factory and warehouse in the next five years.
Usually, the company saw pre-orders accounting for 70% of the sales target, which reinforced the company’s confidence in growth and risk mitigation. At the same time, pre-orders for beverages increased to 80% of annual target, while pre-orders for coconut milk products dropped to 20%, although the company saw it as a positive sign due to coconut milk’s longer usage period, while the beverage is a one-time consumable item, said Worawat.
