T.A.C. Consumer PCL. (TACC) showed off its strength going against the stagnant economy. The first nine months of 2015 witnessed a net profit of Baht 54.29 million, a leap of 77.36 percent from the net profit of the same period last year. The increase was attributable to an improvement in gross margin and better efficiency obtained from expense controls. "Chatchawee Wattanasook" is confident the operating results for the full year 2015 would show a solid growth. TACC is all set for IPO subscription and listing in mai by 2015 year end.
Mr. Chatchawee Wattanasook, Chairman of T.A.C.Consumer (TACC)’s Executive Board, supplier and distributor of tea and coffee in “7-Eleven" disclosed the Company’s operating results for Q3 period ended 30 September 2015 showed that the total revenue was Baht 248.09 million, a 2.56 percent decline from that of the same period last year. Net profit amounted to Baht 15.33 million, an increase of Baht 7.77 million or 102.72 percent year on year, the net profit for the same period last year was Baht 7.56 million.
During the first nine months of 2015, total revenue was Baht 745.42 million, a decline of 3.25 percent from that of the same period last year. Net profit for the first nine-month of 2015 was Baht 54.29 million, an increase of Baht 23.68 million or by 77.36 percent compared to the net profit of the same period of 2014, which was Baht 30.61 million and it was also higher than 2014 full year net profit, which was Baht 51.84 million.
"For the first nine months of this year, the net profit grew notably despite the stagnant economy since the Company put emphasis on marketing products which provided higher gross margin and the production capacity of instant drink mix has been more fully utilized. The capacity utilization is now at 95.60 percent of the whole capacity. This pushes production cost per unit down. As a consequence, the gross margin for the first nine months of 2015 increased to 30.53 percent from 28.20 percent in 2014. Besides, the Company has also been benefited from management efficiency from expense controls, especially in marketing and sales promotions. From this reason, the net profit rose from 5.15 percent in 2014 to 7.28 percent in the first nine months of 2015. The operating results are expected to improve further for the remaining period of the year 2015, " Mr. Chatchawee stated.
Taking into account the Company’s financial condition, its status remained strong with debt-to-equity ratio (D/E Ratio) at the end of Quarter3 of 2015 at 1.50 times, dwindling from 2.27 times at 2014 year end. The Company’s return to equity ratio or ROE was exceptionally high. The ROE was 93.39 percent for 2014 full year and 66.50 percent for the first nine months of 2015. The ratio reflected the Company’s good performance in efficiency and profitability.
Chairman of T.A.C. Consumer PCL. (TACC)’s Executive Board also mentioned TACC planned to make its initial public offering (IPO) of 168 million ordinary shares at Baht 0.25 par value. 159 million shares would be offered to the general public and the remaining 9 million shares are offered to directors, executives and staff members. The proceeds from the IPO would be invested in the installation of 1,500 Vending Machines by the year 2017 and used as working capital. IPO subscription and the listing process should be completed by this year end.
TACC has been considered a tea and coffee sourcer, supplier and distributor who put emphasis on clearly distinguished product characteristic and uniqueness. The major portion of the Company’s revenue is generated from sales of dispenser iced coffee and milk tea distributed in every 7-Eleven. In addition, the Company also markets products under own brands like “Zenya” green tea, “VSlim” coffee, “ChaCha” instant drink mix, “Na-Arun” and “Sawasdee” which are sold locally and in export markets.