ICHI’s net profit jumped 39.4% from a year earlier to 159.2 million baht for the three months through March while sales revenue was 1.29 billion baht. Domestic sales rose 5%, and profit contribution from its business in Indonesia amounting to 8.4 million baht achieved the target as it continued to get good response from consumers there. The Company is closely monitoring development of the COVID-19 pandemic while the second quarter performance is seen brighter due to the launches of new healthy beverage products and summer season.

Tan Passakornnatee, President & CEO of Ichitan Group Public Company Limited (ICHI), revealed that ICHI’s quarterly net profit surged 39.4% over the same period last year to 159.2 million baht, though its sales revenue marginally fell 2.6% to 1.29 billion baht. The Company’s gross profit margin for the January-to-March period rose to 19.6% and net profit margin stood at 12.4%. Growth of local market, accounting for 72.9% of ICHI’s total sales, was still solid, while that of exports dropped due to the floundering economies of trading partners, partly dragged by the COVID-19 spread. Amid the coronavirus outbreak, mainstream green tea which has taken the lion’s share of the green tea market and a new flavor of Yen Yen Jab Liang drink have had a great response from consumers, while Shizuoka green tea brand has continued to gain in popularity.

Its joint venture Ichitan Indonesia marked another year of success with profit contribution of 8.4 million baht realized by ICHI for the first three months of this year as its products - Thai milk tea, Thai milk coffee, Thai milk green tea and the newly launched Thai Mango coconut – which indicates Thainess to cherish Indonesian consumers - have already gained ground, and products have become more diversified.

For domestic market, ICHI continued to perform well and its green tea products are seen to be thrive in the second quarter in the light of unveils of new cooling effect products “Ichitan Icy Mint”, the honey and lemon flavor mixed with the ultimate cooling effect of fresh mint, and Yenyen Supercool Jab Liang recipe launched in March when summer season begun. Moreover, the Company’s marketing campaigns, particularly Free Fire to keep pace with demand of customers who play E-Sport game, which reach the target groups is giving a boost.

Amid the COVID-19 epidemic, ICHI is determined to introducing new products to serve consumers who are more health conscious and it recently launched “One Morr”, a milk candy picked by mothers for their beloved kids. The milk candy, likes not others, is made from low fat milk that is truly non-dairy creamer-free imported from New Zealand and it is available at retailers’ stores, traditional trade and Makro at a price of 10 baht for a 10-gram pack. ICHI hopes that the milk candy would lend support to the second quarter’s and the latter half’s earnings.

ICHI has expanded its product lines by unveiling “PH PLUS 8.5” brand, an alkaline water which contains vitamin B complex (vitamin B3, B5, B6, B9) to redress body balance by removing acid to restore health and keep fresh feeling every day. The new drink, produced from Japan’s modern technology innovation, is priced at 20 baht for the 550-ml. size. It also rolled out two new flavours of Shizuoka ready-to-drink green tea, featuring Gyokuro recipe without added sugar, and blended Tencha and Matcha honey recipe - in 440 ml bottle. Both flavors are unique recipes developed by new generation tea master from Shizuoka and they already hit shelves nationwide.

“The overall picture of ICHI’s beverages, their performance, though the situation is in difficult time from the COVID-19, managed to meet the targets, given its adjusted strategy plan to penetrate into markets that match each product. Local market prospects remain promising, while Ichitan Indonesia’s improved performance coupled with prudent cost management to maintain profit margin propelled its first quarter profit. ICHI is keeping a close watch on the COVID-19 spread,” Mr. Tan said.

In the first quarter (ended March 2020), Thailand’s ready-to-drink tea market declined 5.66% to 2.78 billion baht and fell 6.68% in terms of volume. Premium green tea shared 12.37% of the total tea market value, and Shizuoka ready-to-drink green tea brand controlled 25.4% in the premium tea market.