Bangkok--20 Mar--IR PLUS
"Ichitan" targets sales of 6.7 billion baht by expanding and penetrating Coconut Jelly tea for teenagers, which currently has a high growth. Also, after obtaining the healthy logo, the company is planning to decrease sugar in the mainstream products in order to meet consumers' demands and reduce a tax burden. Moreover, Ichitan will launch a campaign for boosting high season sales. The export market is also growing and aiming at expanding to CLMV market. Last, the company announced that in 2017, it generated revenue of 5,688 million and a net profit of 315 million baht and just approved a dividend of 0.15 baht per share.
Mr. Tan Passakornnatee, the president of Ichitan Group Public Company Limited (ICHI), reveals that the company targets sales of 6.7 billion baht in 2018. Ichitan will reduce sugar for mainstream products such as original green Tea, Bireley's, Yen Yen Herbal drink, and Yen Yen Gold, in order to be healthy drinks. The label shows that it contains only 60 kcal per bottle, in line with the concept of "The tea which cares you most". In addition, after installing a new production line, Ichitan is aiming at boosting a sales of, a high-growth product, Chew Chew, a coconut jelly tea.
The export market will be growing significantly in 2018 since CLMV market, which is Cambodia, Laos, Myanmar, and Vietnam, has pre-orders. The firm expects overseas revenue to be increasing to 27% of the total targeted sales.
"In 2018, the domestic beverage market tends to improve. Not only Ichitan's strategy is to penetrate to all customers, but it also focuses on expanding sales channels both in domestic and export markets. During the high season of the business, the campaign launched "Ichitan, the funniest and richest code – one lid for four cars" from March 1 to May 9, along with the online marketing campaign, making the beverage market more interesting. This year's total target sales plan is expected to reach 6.7 billion baht" stated Tan.
or 2017 result, Ichitan generated a net profit of 315 million baht and revenue of 5,688 million which is increased 6.5% YoY due to the growth of export. The domestic tea market shrank while cost of goods sold is rising since there was a stiff competition. However, Q42017, the revenue grew especially the export trend seemed to be positive for years ahead. The board committees approved the dividend payment of 0.15 baht per share. XD date (No right to get dividend) is May 2 and the dividend payment date is May 18, 2018.