Ichitan Group Public Company Limited (ICHI) delivered a robust net profit of 407.5 million baht in 2019, rising 829.4% from the previous year, while income amounted to 5,334.2 million baht. Domestic green tea market remained bright with the solid growth in mainstream green tea, while Shizuoka green tea continuously retained its leading position in premium market controlling a 31.1% market share. ICHI's board of directors approved dividend payment of 0.35 baht per share, payable on May 21st, 2020.

Tan Passakornnatee, President & CEO of Ichitan Group Public Company Limited (ICHI), said ICHI's 2019 net profit was 407.5 million baht, up 829.4% from the preceding year's 43.8 million baht. The Company's 2019 gross profit stood at 18.6% and net profit margin at 7.6%. ICHI's sales revenue rose from a year earlier to 5,334.2 million baht, thanks to a 9.8% growth in domestic market which canceled out a 12.7% fall in export market dampened by trading partners' economic slowdown.

ICHI's board of directors approved cash dividend payment of 0.35 baht per share, derived from net profit and retained earnings (under the BOI's privilege wherein shareholders are not entitled to a dividend tax credit), for the 2019 operating performance. The record date for dividend has been slated on May 7th, 2020 and it will be paid on May 21st, 2020.

ICHI’s target-beating profit growth could be largely attributed to a successful implementation of unique marketing campaigns with prudent cost management but effective market penetration, a decline in selling and distribution costs, new products launching and a strong growth in domestic market particular in mainstream green tea which is the Company’s core product.

Shizuoka, a ready-to-drink premium green tea made from 100% tea leaves imported from Shizuoka Province in Japan, continued to keep premium tea crown, with a 31.1% market share at the end of 2019. Thailand’s premium tea market grew 21.8%.

Even though the economic slowdown of trading partners and the intensified competition dealt a blow on exports, ICHI adapted business strategy by shifting focus to countries with healthy economic growth and exploring opportunities in high growth business.

For ICHI’s affiliated company in Indonesia, it is expected to continue contributing profit to the Company this year after it started making profit since the third quarter last year as Thai tea milk and coffee products are gaining popularity there.

ICHI targets a 7% income growth in 2020 to be driven by market and product line expansion, and branching into business which has opportunities. The Company gears up to launch continuous campaigns to serve E-Sport Free Fire game players between April 10th and June 30th following last year’s success, and quench thirst with new tastes of each product line starting from adding Ichitan Icy Mint, a mint honey lemon drink with extreme cooling sensation, to green tea product range. ICHI plans to use online TVC for marketing campaigns and diversify communication channels.

At the end of 2019, Thailand’s ready-to-drink tea market amounted to 12,320 million baht, up 3.1% in terms of value and 2% in terms of volume. Premium green tea accounted for 11.2% of the total tea market value, led by Shizuoka with a 31.1% market share.