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.

Major General Patchara Rattakul, Chief Executive Officer, commented on the business outlook for the second half of 2024, stating, “Considering the current business situation, we find that the tourism sector continues to grow, resulting in sales from the HoReCa and Modern Trade channels in the first half of 2024 growing by 27% and 14%, respectively, compared to the same period in 2023. We are confident that this positive trend will continue, and we will adjust our strategies to further enhance revenue from these channels, especially during the high season at the end of the year. At the same time, we remain committed to improving production efficiency. In Q3, we have started a project to reduce the use of new plastic by optimizing the size of caps and PET bottles, which, based on our latest estimates, will help reduce plastic usage by around 480 tons in line with our sustainability policy and reduce packaging costs in the second half of 2024.”

On August 23, 2024, the board has approved an interim cash dividend of ฿0.48 per share for the period from January 1 to June 30, 2024. The dividend will be paid on September 20, 2024. Shareholders eligible for the dividend must be on record by September 6, 2024, with an ex-dividend date of September 5, 2024.

###

HaadThip Public Company Limited (HTC) proudly serves as the exclusive manufacturer and distributor of a diverse range of The Coca-Cola Company's renowned beverages across the 14 Southern provinces of Thailand. Our portfolio includes iconic brands such as "Coke", "Coke Zero", "Coke Lite", "Fanta", "Sprite", "Schweppes", "A&W Root Beer", "Minute Maid Splash", "Minute Maid Pulpy", "Namthip" drinking water, "Bonaqua" mineral water, and "Ooha".

For media inquiries, please contact:

Public Relations Department, HaadThip Public Company Limited Tel.: 074-210-008 to 18, ext. 208

Ms. Piyamas Kampalanont, Public Relations Manager

Ms. Suwadee Srisomboon, Public Relations Supervisor (External Communication)