Bangkok--28 Aug--IR PLUS
ICHI announced beverage strategy for the second half of the year, reinforcing the leader of the premium tea market in Thailand, Going forward to penetrate the OEM and export markets. Ichitan Indonesia has a bright direction due to the excellent response from the new product launches supporting the strong performance this year both revenue and profit. Setting the annual revenue target to grow 12% from the previous year
Mr. Tan Passakornnatee, President of Ichitan Group Public Company Limited (ICHI) revealed that the business overview in the second half of the year 2019 is likely to grow continuously. After having a clear business structure adjustment and focus on marketing strategies to reach target customers in particular groups both in the premium tea market and teen market also conducting campaigns targeting small retail merchants in traditional retail markets focusing on the target group has been well received and profitable, creating a stable base of long-term performance.
Highlighting on Ichitan Green Factory with efficiency in producing almost all beverages with 7 high technology production lines, with highest capacity of 1,500 million bottles / year, creating opportunities to expand new product lines. Responding to the beverage trend in the future, as well as expanding the OEM market as it is a low-risk business Supporting substantial profits
"The first half of the year sales and profits grow. Due to management restructuring, adjusting marketing strategy by stop focusing on promotion, cutting off the underperform SKU and expand to OEM and export markets to support profitability.
"We are confident that the revenue target for this year will grow by 12% from the previous year with 5,216.2 million baht and profit at 43.84 million baht, we believe Ichitan has passed the lowest situation" Mr Tan said.
The latest earnings results for the second quarter of 2019 have reported net profits of 136.8 million baht, an increase of 550% compared to the same period last year, a loss of (30.4) million baht. The sales revenue was 1,645.1 million baht. Up 23.4% compared to the same period the previous year at 1,333 million baht.
Results for the first six months of this year Ichitan has a net profit of 251 million baht, an increase of 9,940% compared to the same period last year of 2.5 million baht. Sales revenue is 2,964.5 million baht, an increase of 11.7% compared to the same period of the year at 2,654.5 million baht.
As for the Ichitan Indonesia subsidiary, the loss was recognized from 55 million baht in 1Q / 2019 reduce to 4.8 million baht in 2Q19 due to the Thai Milk Tea product received acceptance in the Indonesian market after do marketing
While the overall market for ready-to-drink tea in Thailand in the first half of the year was 6,439 million baht and grew 5.5% in sales terms, while the premium tea market grew 33.4%, which is the highest growth rate in the ready tea market. Shizuoka is now the number one brand in the premium ready-to-drink tea market.
While pushing for new strategies to continue to dominate leadership by adjusting the marketing strategy to reach the premium mass group more than health-loving people and the premium market.
As well as sending the latest 2 advertisements, named "Good water Dee", 30 seconds long and the other called "Good soil", 30 seconds long, from the brand Shizuoka, to present a premium image from the perspective of meticulous spirit and determination of Japanese farmers. That wants to deliver quality green tea to Thai people to taste which believes that the commercials are still the most accessible media for consumers And can also be used to expand online and social media.