"Ichitan (ICHI)" is on the rise, with results in the Q3 of 2022, a record sales history, for the first time to win over the Q2, with total sales of 1,664.2 million baht, (43.6% increase), and a net profit of 192.2 million baht, (49.8% increase). As the end of the year approaches, "TANSANSU," Korean soda, the company's banging product, was launched. The OEM business' revenue increased, with several waiting lists of customers who had trust in Ichitan's production technologies and experience. Aside from Ichitan Indonesia's impressive performance, submission profit sharing has exceeded expectations.
Mr. Tan Passakornnatee, CEO of Ichitan Group PCL. (ICHI), announced that the operating results for Q3/2022, quarterly sales set a record in the company's history and, for the first time, it won the Q2, which is a high season in the beverage industry, with revenue of 1,664.2 million baht, a 43.6% increase, and a net profit of 192.2 million baht, a 49.8% increase, considering the superior performance to the industry. According to Nielsen, the overall RTD tea market in the first 9 months of 2022 grew by 23.07%, with a market value of 10,380 million baht, which is higher than the overall beverage categories.
Ichitan's impressive growth can be credited to the 3N strategy (New Product, New Market, New Business), which includes expanding the company's new product portfolio to a soft drink market with a higher market value. The recently released "TANSANSU" Korean soda is a highlighted product to penetrate Gen Z, who enjoy trying new things and are fascinated by KPOP culture. TANSANSU has received a positive response since its launch and is expected to achieve 150 million baht this year. In addition, the release of another new product, "Ichitan Catechin 0 Calorie," comes 2 flavors, Jasmine Green Tea and Oolong Tea, with 0% Sugar and 0 Calorie, quality tea at a price of only 20 baht, making it convenient for consumers to drink more often. The product aims to support the healthy living trend, in which consumers pay more attention to their health.
The ICHITAN OEM SERVICE business has bright prospects, with revenue from two new customers, Acer Predator Shot Vitamin Drink and Thaitanium Power Energy Drink, a new generation of vitamin-enriched energy drinks that are already available on the national market. As a result of OEM service, the factory's utilization rate increased to 65% from 49% during the same period last year, lowering the cost per bottle.
While the export market is recovering, costs are starting to decline as the global oil market recovers. With the global economic situation putting pressure, Ichitan focuses on internal management. As a result, the gross profit margin was 19.5% in Q3/2022, while the net profit margin was 11.5%. Meanwhile, the share of profit from Ichitan Indonesia in the first 9 months was 65.5 million baht and has the potential to reach a new high by the end of this year. In August, Ichitan Indonesia began exporting products to the Philippines via more than 1,300 Alfamart stores, and the company expects to gain revenue from new products Calvit, Milk Yogurt at the end of the year
An overview of Q4/2022, it is still in an uptrend to support planned sales of 6,500 million baht, or 24% growth from 2021, Ichitan also emphasizes creating sustainable business growth, recently received an "Excellent" CGR rating of 5 stars for the 6th consecutive year (2017-2022) from the Thai Institute of Directors Association (IOD) in the Corporate Governance Report of Thai Listed Companies 2022 (CGR) Program Assessment 2022: CGR) (SET), which has a survey on corporate governance of 750 Thai listed companies. This proves Ichitan's determination to optimize corporate governance and business operations for the organization to grow sustainably.