HaadThip (HTC) Reports Q2: Revenue Up 12%, Profit Grows 6% Despite Rising Costs, Announces ฿0.48 Interim Dividend

HaadThip (HTC) Reports Q2: Revenue Up 12%, Profit Grows 6% Despite Rising Costs, Announces ฿0.48 Interim Dividend

BANGKOK, August 15, 2024 – HaadThip (HTC) reported its Q2 2024 financial results, highlighting sales of 2,219 million baht, marking an increase of 235 million baht or 12% compared to the same period in 2023. The company remains optimistic about continued strong performance in the second half of the year, driven by growth in the tourism sector, particularly during the high season at the year's end. Despite rising costs, HTC has implemented strategies to boost revenue through rapidly growing channels like Hotel, Restaurant, and Café (HoReCa) and Modern Trade, while also enhancing production efficiency and adjusting packaging sizes to meet its year-end profit targets. On August 23, 2024, the company’s board approved an interim cash dividend of ฿0.48 per share, scheduled to be paid on September 20, 2024.

HaadThip Public Company Limited (HTC), the exclusive bottling partner of The Coca-Cola Company for the 14 Southern provinces of Thailand, reported Q2 2024 sales revenue of 2,219 million baht, an increase of 235 million baht or 12% compared to the same period in 2023. The company continues to benefit from the growth of the tourism business. According to the Ministry of Tourism and Sports, the number of foreign tourists in Q2 2024 reached 8 million, an increase of 27% compared to the same period in 2023. The top three areas with the highest sales growth for the company were Phuket, Trang, and Samui, growing by 33%, 25%, and 20%, respectively. Additionally, the zero sugar product category continued to grow strongly by 29%, with the launch of a new product, Schweppes Mandarin Yuzu Zero Sugar, in Q2 2024.

While sales revenue continues to grow, the company also faces rising costs, particularly for liquid sugar and aluminum cans, which increased by 20% and 13%, respectively, compared to the same period last year. These factors resulted in total cost of goods sold in Q2 amounting to 1,287 million baht, an increase of 151 million baht or 13%, and a gross profit of 932 million baht, an increase of 84 million baht or 10% from the same period last year. After deducting slightly increased distribution and sales and administrative costs due to higher sales, as well as increased financial costs from loan interest for expanding the production line at the Punpin Plant in Surat Thani province, the company had a net profit of 159 million baht in Q2, an increase of 8 million baht or 6%, with a net profit margin of 7.2%, down 0.4 percentage points compared to the same period last year.