MALEE goes through its first strategic plan, building foundation and strength; Ready to step into the second phase, aiming at aggressive and sustainable growth
28 February 2018
Bangkok – 23 February 2018 – Malee Group Public Company Limited announced its 2017 sales of Baht 5,916 million, net profit of Baht 286 million, and EBITDA of Baht 535 million.
Ms. Roongchat Boonyarat, Chief Operating Officer of Malee Group Public Company Limited (“MALEE”) disclosed the operating results for the year 2017 that, “In 2017, the Company and its subsidiaries recorded total sales of Baht 5,916 million, a decrease of 10% YoY, with net profit of Baht 286 million, a decrease of 46% YoY. Sales declined from domestic branded and export CMG sales. However, exported branded continued to grow outstandingly, while domestic CMG sales also increased from new products. The key reason for the significant growth of 30% YoY for export branded sales is that, the Company has been working closely with its distributors and partners in each country by cooperatively working on strategic plans to select the right products and marketing strategy for each focused country, such as emerging countries in ASEAN as well as China. However, it is one of the highest revenue and profit years since the Company’s establishment.”
Ms. Roongchat continued that “In 2017, the Company’s sales declined, in line with the contraction of the beverage market and the domestic ready-to-drink fruit juice market, due to the slowdown in domestic consumption which reflected in sluggish spending in fast moving consumer goods (FMCG). Meanwhile, the Company’s costs increased, mainly due to its investments to build the foundation for future business growth, while some investments cannot generate revenue immediately, and some investments are not fully utilized or have not reached the optimal level yet. Therefore, cost per unit was higher at this point, which might continue to impact the Company’s operating performance in the short term, or for the next 2 quarters.”
“However, the Company expects to have aggressive growth in 2018, according to the Company’s 9-year strategic business plan (2015 - 2023) which is divided into 3 periods of 3 years each. During the first phase of the strategic plan (2015 - 2517), the Company has been building foundation and strength of the organization to support future growth including 1) investments in plant, machinery, and office renovations, aiming at higher production efficiency, reduced production cost, quality systems improvement, environmental care as well as increasing variety of goods and packaging; 2) investments in research and development; 3) adding the competent personnel to support the future growth plan; 4) an establishment of a new subsidiary namely 'Malee Applied Sciences Company Limited', whose objectives to encourage farmers’ incomes as well as enhancing security of the Company's raw materials, aiming at developing innovation and high value added products (HVA); 5) continual building business partnerships and establishing joint ventures both domestically and internationally, in order to develop products and distribution channels to meet the needs of consumers across the region as follows: 5.1) 'Mega Malee Company Limited' in Thailand, whose objective is to develop health-related food and beverage products, in order to fulfill the needs of consumers for health 5.2) 'Monde Malee Beverage Corporation' in the Philippines, whose objective is to be the importer of food and beverage products of the Company for distribution in the Philippines 5.3) ”PT Kino Indonesia Tbk” in Indonesia, whose objective is to be a manufacturer and importer of food and beverage products of the Company as well as developing new products for distribution in Indonesia 5.4) “Malee Kino (Thailand) Company Limited” in Thailand, whose objective is to import and distribute KINO's products such as personal care and beverages products as well as developing new products for Thai market; and 6) the Company’s entering into an agreement to acquire 65% ownership of Long Quan Safe Food JSC (LQSF) from the existing shareholders. LQSF is a major manufacturer and distributor of beverage and food products in Vietnam. LQSF’s cost competitiveness will enhance the Company’s production base for emerging markets in Southeast Asia, while LQSF’s wide-coverage distribution that reaches almost all regions of Vietnam will help expand the Company’s business in Vietnam.”
“The Company has continued to establish its partnerships internationally. This is in line with the Company’s regional networking strategy, planning to utilize the strengths of its partners in each country to build a strong regional network, which will in turn enhance the Company to strengthen its competitiveness to sustainably accelerate growth in the region.”
“All investment projects undertaken by the Company will be a key part of building a strong foundation for the Company, which will help drive growth in the future. The year 2018 will be a year of the Company’s 40th anniversary and the beginning of the new decade as well as the first year of the second phase of the long-term strategy where the Company expects the leap and sustainable growth. The Company will be able to start getting benefits from the past 3 year investment projects, especially from Q3/2018 onwards. Meanwhile, the Company will devote its resources to fully generate revenue as well as switching costs of investment projects to become gradually increasing revenue, according to the utilization rate of the Company’s investment projects.”