ITC Reports a 93% Surge of Net Profit in 1Q24 as Demand for Pet Food Recovers

i-Tail Corporation Public Company Limited (SET: ITC), reported its business results for the first quarter of 2024, with a total sales revenue of THB 4,029 million, marking a 12 percent increase year-on-year. The recorded net profit stood at THB 821 million, reflecting a remarkable growth of 93 percent from the first quarter of 2023 and a notable increase of 7 percent from the previous quarter. These improvements were driven by the normalization of demand for pet food, an increase in the sales proportion of premium products, adjustments to selling prices, and a rise in orders from global pet food brand customers. The Company experienced increased sales in every region compared to the same period in 2023. Furthermore, i-Tail achieved its highest gross profit margin and net profit margin in almost two years, standing at 26 percent and 20 percent, respectively. This success was attributed to effective cost management and product pricing adjustment strategies.

Pichitchai Wongpiya, Chief Executive Officer of i-Tail Corporation PCL, stated, “After overcoming the challenges of 2023, i-Tail’s business has finally rebounded to growth. We are also determined to implement positive changes to drive continuous growth in line with our business strategies in 2024. The Company remains committed to conducting business centered by a Pet-Centric approach, prioritizing the well-being of pets and exploring opportunities that arise from the global pet food industry, which is expected to grow in a positive direction from this year onward.”

“Furthermore, the company has been actively pursuing its strategy to accelerate business growth by deepening relationships with existing customers and expanding to new customers. In line with this strong ambition, we have secured our business agreements to manufacture pet food products for prominent retailers and global brands in the U.S. and Europe, with first shipments expected to be delivered from the second quarter of this year. “

In terms of total sales for the first quarter of 2024, i-Tail had a sales proportion in the Americas accounting for 45 percent of total revenue, while Asia and Oceania accounted for 36 percent, and Europe for 19 percent. The proportion of sales can be divided according to three main product categories: cat food at 75 percent, dog food at 13 percent, pet treats at 10 percent, and other products at 2 percent.

In addition, we prioritize responding to the trend of humanization, wherein pets are treated as important family members. This trend is accompanied by an increasing demand for premium pet food products, which aligns with the Company’s goal of delivering nutritious products through state-of-the-art production technology and quality raw materials selected from trustworthy and sustainable sources. These efforts are aimed at serving the needs of pet parents worldwide, who prioritize the health and well-being of their pets. Moreover, the Company has launched over 500 new products in the quarter to meet the rising demand for our products across all regions worldwide.

Importantly, the Company is investing approximately THB 1.3 billion to enhance its operational efficiency by installing an Automated Storage & Retrieval System (ASRS) at its factory in Songkhla province, which is anticipated to be completed by 2025 with the aim of supporting sustainable business growth and improving cost optimization in the long run.

Last but not least, i-Tail remains dedicated to strengthening its business operations while aligning with the Group’s sustainability strategy, SeaChange® 2030. The company has recently initiated the installation of a wastewater treatment system to enhance water quality through the implementation of Ultrafiltration and Reverse Osmosis (UFRO) filtering technology at its factory in Songkhla province. As one of the five pilot factories of the Thai Union Group in the ‘best-in-class manufacturing’ commitment, the UFRO installation, which is expected to be completed by 2025, will support the ambitious goal of achieving zero water discharge by 2030.

“I am confident that i-Tail will continue to achieve robust growth and deliver exceptional results in 2024. This further strengthens our position as one of the world’s leading pet food manufacturers, determined to deliver positive value to society and all stakeholders as we progress towards long-term sustainable development together,” concluded Pichitchai Wongpiya.