BANGKOK, July 9, 2024 – (ACN Newswire) – Chaosua Foods Industry PCL (‘CHAO’) today listed its shares for trading on the Stock Exchange of Thailand (SET) in the “Agro & Food” (AGRO) industry group under the “Food and Beverage” (FOOD) business sector, using the abbreviation CHAO for share trading. The Company boasts market leadership in “modern Thai snacks”, which have been popular with consumers for decades.
CHAO, with 66 years in the industry, is now ready to leverage current successes by taking Thai brands to the global stage, introducing the “Chaosua” and “Wholesome” brands to a worldwide market under the “Bring Local to Global” concept.
The Company is also moving forward with the construction of the second “Wholesome” brand factory and further upgrading operating system automation to support the growth potential derived from expanding overseas markets. This is reflected in the 1Q/2024 operating results, which show net profit for the quarter expanding by 43.4%.
Ms Napatr Morin, Chief Executive Officer of CHAO, said the Company has always been committed to creating tasty food products and can be relied upon to produce consistently high-quality products. This characteristic has been driven by innovations and care for the planet. The Vision is to bring the secret recipes of Chaosua’s Thai flavours to the international market while continuously creating new products to fit the “Everyday Consumption” approach in response to the lifestyle of consumers on every occasion, including being the preferred choices for consumers as “Better-For-You Snacks”.
At the same time, the Company is determined to create growth in the global market by developing the Chaosua and Wholesome brands into the appropriate and universally accepted global brands under the “Bring Local to Global” concept. This is a part of the drive to grow the Company in quantum jumps in a bid to maintain the leadership in the business of producing and distributing “modern Thai snacks to continually meet the lifestyle needs of consumers. The Company will also continue to expand distribution channels to cover both domestic and international markets to create sustainable growth.
“In listing ‘CHAO’ on the Stock Exchange of Thailand, we believe that this move will help promote growth – from the accessibility to capital and to the expansion of production capacity. We are preparing to build the second ‘Wholesome’ factory, along with being ready to further create continuous growth, maintain leadership status in the rice crackers and snack foods processed from pork products, and expand the production of new products in response to current and future consumption trends. More importantly, the company is fully mindful of its responsibility towards society, the environment and all stakeholders, to create good returns for investors in the long term,” Ms Napatr said.
Ms Intu-on Morin, Director of Accounting & Finance, CHAO, said that over the past three years, the Company has achieved strong operating results, both in revenue and net profit. In 2021, 2022, and 2023, revenues from sales were 1,135.1 million baht, 1,413.6 million baht, and 1,493.4 million baht, respectively, representing an average annual growth rate of 14.7%. Where net profit was concerned, the Company posted 64.4 million baht, 86.6 million baht, and 161.6 million baht in net profits in 2021, 2022 and 2023, respectively, representing an average growth rate of 58.45%, and the net profit rate continued to increase at 5.6%, 6.1% and 10.7%, respectively. The Company’s growth in net profit was the result of the increase in sales revenue, effective cost management, and economies of scale.
Meanwhile, operating results in 1Q/2024 showed a sales income of 336.2 million baht, growing 4.1% compared to 1Q/2023 as a result of the growth of the snack product group. Net profit in Q1/2024 was 26.7 million baht, an increase of 43.4%, compared to Q1/2023, reflecting the strong growth of operating results of the group of companies due to the implementation of the strategic plan as it laid out, the expansion of the market and the customer base, as well as the expansion of the distribution channels both domestically and abroad to foster sustainable growth.
Mr. Pongsak Phrukpaisal, Managing Director of Kasikorn Securities, CHAO’s financial advisor and underwriter of common shares, said that CHAO is considered a Company with strong fundamentals, creating good returns for investors, with its strength of being a leader in the modern Thai snack market with No.1 market share in the rice crackers category (78.5% in 2022) and snacks processed from pork (57.2% in 2022). The Company has a wide variety of products that are able to respond to consumer lifestyles, continuously developing new products under the “Better-for-You Snack” concept to meet constantly shifting consumption trends. The Company owns the popular “Chaosua” brand, gaining confidence in its quality by international standards. The distribution channels are wide and varied, while its 66 years of experience and expertise in the industry are reflected in its ability to make profits with a clear investment plan to expand the business.
In addition, the Company is still in its growth stage and the offering is classified as “Growth Stocks” due to being in an industry with a high growth rate, while it is also able to create new products to continuously meet the needs of consumers. That, along with the overseas market expansion plans in countries with growth potential. At the time of the IPO, CHAO was considered a new offering that institutional and retail investors were very much interested in, with a total offering value of 1,034.67 million baht after being listed on the Stock Exchange of Thailand. This development will help to enhance “Chaosua’s” business growth potential while also creating sustainable growth for the maximum benefit of shareholders and all stakeholders. Therefore, CHAO will be another quality stock for investors in the Thai capital market to consider, said Pongsak.
Released by Public Relations Dept., MT Multimedia Co., Ltd. for Chao Sua Foods Industry Plc.
For additional information, please contact: Wasana “Jeab” Wongsiri
Tel: +66 (0) 84 359 0659, +66 (0) 2 612 2081 ext. 131; Email: wasana.w@mtmultimedia.com
Chaosua Foods Industry [SET: CHAO; CHAO/F; CHAO-R] https://www.chaosua.com/en/
Topic: IPO