Mr. Jittiporn Jantarach, Managing Director of Exotic Food Public Company Limited (mai: XO), stated that the company’s performance in the second half of the year is likely to generate weaker revenue than the first half of THB 1.09 billion since its customer in overall still has significant products in their stocks, causing most of their sauce orders to drop.
In the first half of this year, XO generated revenue from sales of THB 1.09 billion, but still estimated that its full year sales revenue would be lesser than the last year of THB 2.49 billion. This is due to the fact that the customers need time to clear their stocks following the large sales orders between 2023 – 2024. Historical record shows that there are several years that the company also faced weaker sales due to clients’ stockpiling goods in the prior year.
As for the U.S. market, XO received large orders and exported a significant amount of products between September 2023 to January 2024. These products are likely to expire between 2025 – 2026. Therefore, the company estimated that it will require a long period of time to recover its sales. Regarding the Mexican market, the company received a report at the beginning of the year, the customer still has enough products for until the end of the year. Therefore, it is estimated that the restock would begin in 4Q25.
In the Canadian market, the customer at the beginning of the year still had enough products for four to six months. Still, XO continued to receive orders during the second and third quarters. The company estimated that the order volume would return to normal by 2026 before its sales revenue reached its peak in 2027. After the U.S. imposed tariff policy, the company has a positive view on the Canadian market as the tariff increases the U.S. sauce price. This marks an opportunity for the company to expand its sales.
The European market also faces a similar situation as it requires four to six months from the beginning of the year for XO’s sales volume to recover. As for the U.K., the company’s products returned to Tesco’s 400 branches of the total of 3,000 this month. There are also nearby markets that show significant growth, such as Poland and Spain, which the company may leverage.
Mr. Jittiporn stated that the company’s 2025 sales revenue may be cut, but its gross profit target will remain at 45%. In the first half of the year, the company achieved a gross profit of 46% following its effective cost and spending management and focus on selling sauce products primarily, which generate the highest gross profit.
Regarding the construction of a new manufacturing plant, the process should begin in 2026 to address the strong sales of more than THB 2.5 billion in the next three to five years. Currently, XO is designing the plant and finalizing its CAPEX plan, which should not exceed THB 700 million.
