Mr. Tan Passakornnatee, Chief Executive Officer of Ichitan Group Public Company Limited (SET: ICHI) revealed at a seminar organized by a “Kaohoon Turakij” and held at the Stock Exchange of Thailand he expects to see 10,000 million baht in revenue by 2025.
The planning for operations in the next three years (2024-2026) remains challenging due to potential positive or negative market pressures. However, the company aims to maintain its market share in Thailand while focusing on expanding further into international markets, the CEO said at a seminar.
In 2024, the company targets a total revenue of 9,000 million baht, a 12% growth from 8,085.04 million baht in 2023, with plans to reach 10,000 million baht in 2025. Strategies for achieving this include maximizing production efficiency, capitalizing on the strong growth in the green tea beverage market, high-margin premium product launches, expanded distribution channels, and improved economies of scale at manufacturing facilities. Additionally, cost savings from reduced marketing expenses, decreasing to just 4% of sales from over 10%, further contribute to its growth targets.
As for the international market, ICHI is leaning toward a new market expansion strategy focusing on profitable partnerships rather than investing in new manufacturing plants. The company also plans to separate production lines for low-selling products from automated machinery to reduce costs. These excess production capacities can be utilized through OEM contracts or partnerships for mutual growth instead of competition.
Mr. Tan highlighted that global warming and changing consumer trends are driving market expansion, notably in the beverage industry, with younger generations spending more time outside and a thriving tourism sector boosting consumption.
Overall, the company anticipates positive performance in Q1 2024, reflecting high production capacity, with expectations for continued growth in Q2 2024 due to the summer season in Thailand and the festive Songkran period.
