ICHI announces Q2/21 performance with revenue of 1,492.7 million Baht, net profit of 164.3 million Baht resulted from strategy adjustment to fight COVID by continuous penetration of small retail market and health beverages with products aiming to expand customer base and keeping sales from stumble, preparing the launch of health products in the second half of the year, and expecting good news from the OEM business with additional deal closure within this year.
Mr. Tan Passakornnatee, President & CEO of Ichitan Group Public Company Limited or ICHI, revealed the overall performance under the still intense COVID-19 situation that Ichitan continues to maintain domestic sales and net profit growth resulting in Q2/2021 performance with sales revenue of 1,492.7 million Baht, an increase from the same period last year by 9%, net profit 164.3 million Baht, an increase from the same period last year by 10%. In addition the subsidiary company, Ichitan Indonesia, continues its positive signals with profit sharing of 8.6 million Baht, while Ichitan recognized for the first quarter the OEM business revenue from King Power Multiply by Eight which support the net profit margin to remain high at 11%.
The success of the second quarter performance came from a strategy to tailor mainstream products to the needs of the retail market across the country (Traditional Trade) that responded well to consumer's needs in the current situation resulting in the growth of the overall market for ready-to-drink green tea "Ichitan" and "Yen Yen" with expected continuation of positive trend.
For non-tea product line, the launch of new product, "Ichitan PH Plus 8.5 with Vitamin D and Ginkgo", a healthcare drink for Thai people with high vitamin D that helps the normalize function of immune system highlighting "alkaline water" from Japan standard production technology different from other products in the vitamin drink market, was able to support vitamin water portfolio to gain Top 5 leader position despite only 1 year of market penetration. The overall market of Vitamin infused Water in Thailand in the first half of 2021 has a growth rate of approximately 77.1% from the same period last year or 1,295.4 million Baht, ranking the highest growth in the entire beverage market.
In the second half of the year Ichitan is ready to penetrate the healthy drink market optimizing the consumer health care trends under the pandemic situation by launching Shizuoka Hojicha Mildly Sweet formula, premium RTD tea, "Ichitan Green Tea X" combining 2 benefits of the popular green tea flavor with vitamin C and A imported from Europe, and "Yen Yen Minimal" less sugar 2% responding to the needs of urban people, and confident that this will increase the competitiveness of Ichitan Group.
To support growth of revenue and profit, potential of OEM or product manufacturing business will be expanded through the high level of utilization rate highlighting Cold Aseptic Filling Technology, features World's class production technology, that can produce variety of beverage not limited to RTD tea but also vitamin drinks, milk, fruit juices, energy drinks, and etc. When combined with Ichitan's expertise our partners, leading companies both domestically and internationally have interested in the OEM service. Currently Ichitan is in the process of negotiating with a few potential companies with expectation to close at least one additional deal within this year after the start of revenue recognition from the King Power Multiply by Eight.
Ichitan is determined to drive its business to rise above the wave with the changing of the World situations with 3N strategy ; "New Business", "New Market" and "New Product", never stop development and creation of products to meet the consumer's needs, and being the organization that stands side by side with the society in times of crisis to create sustainability for Thai economy and society.