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Haadthip reports best-ever of full-year results in 77% net profit growth Targeted 2020’s sales revenue at THB 7 billion

Haadthip announced 6.78 billion Baht of the revenue for the year corresponding to 64 million-unit cases of sale volume, or 20% growth.  Net profit grew to 441 million Baht (+77%) as the result of the economy of scale and decreased sugar price and usage. In 2020, the company targets 7 billion Baht of revenue from sales. Key growth strategies revolve around the development of a total beverage portfolio, as well as rapid Digitalization to improve the efficiency of operations and adapt to distribution and retail market changes. Mitigation plans to cope with COVID-19 emergency are being developed as the situation unfold. Adjustments in distribution and product mix are expected, to match with temporary changes in consumer demand and habits.

Maj. Gen. Patchara Rattakul , Chief Executive Officer, Haadthip Public Company Limited, said that 2019 was a remarkable year of Haadthip. The company reported best-ever revenue from sales of 6.78 billion Baht increased 19% from the same period last year driven mainly from the increase of sale volume to 64 million-unit cases in 2019, or 20% growth from the 53 million-unit cases in 2018. These impressive results came from revenue management initiatives (price and promotion) as well as targeted marketing campaigns. Additionally, the strong 2019 performance was supported by made-to-order sales to a local business partner.

Moreover, the Company has posted an admirable net profit of 441 million Baht with 77% growth compared with the same period of last year due to the economy of scale and reducing the cost per unit. Consequently, 2019’s gross profit margin increased from 33.7% to 38.3%, and 2019’s net profit margin increased from 4.3% to 6.5%. As the strengthening operational performance and the solid of financial status, the Company’s interest-bearing debt to equity reduced to 0.22 times and interest coverage increased to 21 times while significantly increasing the return to equity from 9% in 2018 to 16% in 2019.

For the year 2020, Haadthip is targeting to grow revenue from sales to 7 billion Baht, while sustaining 2019 net profit gains and gross profit margin.

It is still uncertain whether Covid-19 emergency will pose a significant risk to the year's target ambitions. So far, the food and beverage sector has shown less volatility in demand when compared to other industries which have been heavily impacted. In the medium term, the key factor will be the duration of the global epidemic, as well as its extension and specific economic impact within the southern Thailand territory, especially in the tourist areas. The company is readily implementing action plans 1) shift toward in-home consumption by adjusting the distribution channels and packaging 2) stringent control in operating expenses 3) COGS reduction initiatives, and 4) prioritization of capital expenditure