ICHI Hits All-Time High in 3Q23 with Ultimate Target to Achieve Billion-Baht Profit

ICHI has achieved significant growth, as revealed in its Q3/2023 financial report, registering a remarkable 25% increase in sales to 2,077 million baht. The company’s net profit soared by an impressive 71% to reach 328 million baht, marking the 30th instance of record-breaking performance attributed to robust domestic demand. The beverage sectors, including Ichitan Green tea, Yen Yen, Ichitan Alkaline Water (pH Plus), and Tansansu carbonated drinks, have all experienced concurrent expansion. The standout performance comes from the ready-to-drink tea segment, which has seen extraordinary growth. Moreover, Ichitan’s OEM business has surpassed expectations, contributing to a 23% surge in this year’s revenue to an impressive 7,800 million baht. With this momentum, Ichitan has set a strategic goal to hit a net profit milestone of 1,000 million baht. In response to these positive results, Ichitan’s Board of Directors has confidently declared an interim dividend of 0.50 baht per share to its shareholders.


Ichitan Group PCL. (SET: ICHI), CEO Mr. Tan Passakornnatee unveiled the company’s remarkable performance for the third quarter of 2023. ICHI witnessed a substantial revenue boost of 25%, reaching 2,077 million baht, along with a net profit surge of 71% to 328 million baht compared to the same quarter last year, marking the highest in 30 consecutive quarters.

Additionally, ICHI enjoyed an increased gross profit margin of 25%, a notable rise from the 20% reported in the previous year. This profitability enhancement propelled the company’s nine-month financials (January to September 2023), with income soaring by 26% to 5,939 million baht and net profit climbing by 80% to 805 million baht.

A key contributor to Ichitan Group’s outstanding financial results has been the success of its domestic beverage sector. The company has witnessed robust sales growth in its RTD green tea products, which have been widespread across both modern trade channels and company showrooms. As of the end of

September 2023, this surge in demand has catalyzed a new wave of growth in Thailand’s RTD tea market.

The RTD Tea category outperforms other non-alcoholic beverage types in the country, leading the market in volume and value. According to retail data from The Nielsen Company (Thailand), the market value for RTD tea during the first nine months of the year has reached a noteworthy 12,329 million baht, representing an increase of 18.75%.


Ichitan Group is witnessing a surge in its diverse beverage portfolio. The Yen Yen herbal tea line, Ichitan Alkaline Water (pH Plus), and a range of products under the Healthy Trend category are experiencing continuous growth. In an exciting development for the youth segment, the company introduced a new Korean-inspired soft drink, “Tansansu Honey Lemon,” in October—the fourth flavor in the Tansansu lineup—aiming to invigorate the market as the year draws to a close.

In addition, the company’s contract manufacturing division, Ichitan OEM Service, has fortified its operations through a significant partnership with the IF brand. This collaboration has facilitated the expansion of product exports, bolstering the OEM business revenue to 48 million baht in the third quarter of 2023. It is on track to exceed the anticipated target of 100 million baht.


On the production front, the third quarter has seen Ichitan’s production capacity utilization soar to 79%, the highest since the company’s inception. This peak is a direct result of the burgeoning demand within the beverage sector, leading to such robust sales that some orders have had to be fulfilled using contract manufacturing services to keep pace. To further bolster production capabilities, Ichitan is installing an additional production line, projected to increase capacity by 200 million bottles annually. Expected to be operational in the fourth quarter of 2024, this expansion will elevate the company’s total production capacity from 1,500 million bottles per year to 1,700 million. This strategic move positions Ichitan to capably meet the burgeoning market demand well into the future.

Amid concerns over potential increases in sugar prices, Ichitan Group has proactively fortified its strategy for over two years. By refining their beverage recipes, the company has substantially reduced sugar content, which, combined with the enhanced production capacity utilization of 79%, has led to a noteworthy decrease in the cost per bottle. Therefore, the prospective rise in sugar costs is expected to have a minimal impact on Ichitan.

Looking ahead to the rest of 2023, Ichitan has adjusted its revenue projections upward, setting a goal of 7,800 million baht, signifying a 23% increase from the previous year. Furthermore, the company is on a strategic path to reach a milestone of 10 billion baht sales by 2025. The profit for this year is well-supported by escalating sales volumes, adept product mix management, and efficient production cost control, setting the stage for a potential net gain of 1,000 million baht, a peak that has yet to be achieved in the past 9 years.

In appreciation of the trust and commitment of its shareholders, the Board of Directors has sanctioned the issuance of an interim dividend of 0.50 baht per share. The record date to determine eligible shareholders has been set for November 22, 2023, with the bonuses poised for distribution on December 6, 2023.