ICHI has released impressive financial results for the first quarter of 2023, showcasing an outstanding performance. With a profit of 222 million baht, the highest in 28 quarters, the company has doubled its earnings while maintaining a gross profit margin of 21%. Despite the recent increase in a sugar tax, ICHI has efficiently controlled costs, and the R&D team has implemented innovative measures to reduce sugar while preserving the product’s deliciousness. Launching new products like “Tansansu” has further strengthened the company’s position. OEM sector has recently closed one significant deals, which has increased production capacity. The company is confident that it will achieve its revenue target of 7,300 million baht, a 15% increase from last year, indicating a positive outlook for the year ahead.
According to Mr.Tan Passakornnatee, the CEO of Ichitan Group PCL. (SET: ICHI), ICHI has achieved remarkable success in the first quarter of 2023, which ended on March 31, 2023. The company’s revenue increased by 27%, reaching 1,832.5 million baht, while the net profit rose by 113%, getting a new high of 222 million baht, the highest in the last 28 quarters. The company’s gross margin of 21% remained high due to efficient cost management practices.
ICHI has introduced several new products that align with current market trends, including a unique flavor of “Tansansu” Korean soda, Soju Melon-Ice Cream flavor, and “Ichitan Alkaline Water Plus CBD” derived from hemp. These new products are part of ICHI’s strategy to expand its Non-Tea product line while maintaining the profitability of existing products like Ichitan Green Tea and YenYen Herbal Tea. As a result, the company’s production rate in March exceeded 100 million bottles per month, setting a new production record.
ICHI’s business has remained unaffected by the recent three-fold increase in sugar tax due to its recipe modifications that use less sugar. As a result, the company is exempt from paying additional taxes, which may even result in cost savings since the price of sugar has increased. The formula adjustment has played a crucial role in achieving a gross profit margin of 21% while also aligning with the current trend of health products.
ICHI is expanding its export business while implementing marketing initiatives in CLMV and Middle Eastern countries. The company expects a growth rate of more than 5% this year. ICHITAN OEM SERVICE has successfully closed deals with 1 significant new clients, “IF” which began production in Q1/2023. The company is currently in contract negotiations with several other businesses.
The company expects to continue its growth trend in the second quarter of 2023, primarily due to the summer season, which is the hottest time of the year, and three other factors that are rebounding, such as domestic tourism and the busy Songkran festival, which is expected to the circulation of 1.25 billion baht, followed by an election-related atmosphere that will boost the economy. ICHITAN is confident that this positive outlook will contribute to its continuing growth in Q2/2023, setting a new record and achieving goals of maintaining a gross profit margin of at least 20%. The company’s total income is expected to increase by 15%, reaching 7,300 million baht this year.
