ICHI Breaks 13-Year High, Targets THB 9 Billion in 2024, Announces Dividend

Stocks News Thursday February 22, 2024 10:20 —PRESS RELEASE LOCAL

ICHI Breaks 13-Year High, Targets THB 9 Billion in 2024, Announces Dividend

Ichitan Group PCL (ICHI) has announced its financial results for 2023, showing strong growth in revenue and profit. The company's revenue reached THB 8,050 million, an increase of 27% from THB 6,340 million in the previous year. Net profit also surged by 71% to THB 1,100 million, exceeding the target set for the year. Gross profit margin stood at 23.4%, driven by recovering consumer spending and a long hot season that boosted the non-alcoholic beverage market. The ready-to-drink tea market continued to grow for the third consecutive year, ending 2023 with a growth of 17.45% (data from The Nielsen Company (Thailand)). This momentum gives ICHI confidence to target THB 9,000 million in revenue in 2024 and maintain a gross profit margin of no less than 23%. The company will start its market penetration in the first quarter with new non-tea beverages to drive revenue toward the target and expand the market to cover all consumer groups. The board of directors has also approved a dividend payment of THB 0.50 per share.

Tan Passakornnatee, CEO of Ichitan Group PCL (ICHI), revealed that the company's operating results for 2023 showed a revenue of THB 8,050 million, an increase of 27% from THB 6,340 million in the previous year. Net profit exceeded the target, reaching THB 1,100 million, an increase of 71% from THB 642 million in the same period last year. Gross profit margin was high at 23.4%, compared to 18.7% in the same period of the previous year.

The success in the past year was driven by the growth of all Ichitan products, especially the Ichitan Green Tea 500ml wide-mouth bottle, which saw a 40.33% increase in sales compared to the same period of the previous year. Non-tea products such as Ichitan Alkaline Water also expanded their customer base through nationwide on-ground activities throughout the year. The communication of the product's benefits that meet the needs of health-conscious customers has made it a regular purchase for home consumption, resulting in a 77.7% increase in sales compared to the same period of the previous year. Tansansu, a Korean-style carbonated drink, is also seeing its sales steadily increasing. The latest launch is Tansansu Yummy Love Soda, a strawberry-watermelon flavored drink with 0% sugar. It is inspired by Korea's hottest summer drink, "Subak-hwachae". The company has also created 6 different labels to appeal to Gen Z teenagers for the past Valentine's Day. This creates brand dynamism with fun and creativity to reach the target group. The company is preparing to push it to become a star product in the future.

Regarding cost management in 2024, the company plans to set a Utilization Rate target of producing at least 100 million bottles per month. It will also accelerate the installation of a new production line with a capacity of 200 million bottles per year, which is expected to start production in the fourth quarter of 2024. This will increase the total production capacity to 1,700 million bottles per year (from the current 1,500 million bottles per year) to support new market opportunities and growing demand in the future. The company is ready to move towards its sales target of THB 10 billion by 2025.

To reward shareholders for their trust in ICHI, the board of directors has approved a dividend payment 2023 at a rate of THB 1.00 per share. An interim dividend of THB 0.50 per share was already paid for January 1 - September 30, 2023, on December 6, 2023. The remaining dividend payment for the period October 1 - December 31, 2023, is THB 0.50 per share, to be paid out of net profit and retained earnings (which are retained earnings of the business that are exempt from corporate income tax (BOI) and shareholders cannot claim a tax credit). The record date for shareholders entitled to receive the dividend and attend the shareholders' meeting.

In 2024, alongside creating a better society, ICHI has announced a new mission to become a carbon-neutral organization by 2050 through the Ichitan Green Factory, which emphasizes responsible production. Currently, every Ichitan bottle reduces plastic usage by 28.5% (compared to traditional production methods), equivalent to a reduction of 7,000 tons of plastic per year. This year, ICHI is accelerating plans to develop eco-friendly packaging and will incorporate at least 30% rPET (Recycled Plastic) suitable for the circular economy to replace new plastic in producing the 500 ml Ichitan Green Tea product. This will help reduce waste, a significant contributor to greenhouse gas emissions. Along with the reopening of the "TanLand Learning Center" under the concept of "Produce Responsibly, Drink Sustainably," it will spark inspiration in the younger generation to understand the impact of responsible product choices on nature and creatively raise environmental awareness to promote environmental concepts on a broader scale collaboratively.

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