ASIAN Reports Strong Q3/2024 Earnings, 9-Month Profit Soars 232% with Confident Margin Target of 17-18%

Akamon Prasoppolsujarit, Chief Financial Officer of ASIAN, disclosed that Q3/2024 revenue reached THB 2.749 billion, up 8.4% from THB 2.535 billion in the same quarter last year and 1.2% higher than the THB 2.716 billion recorded in Q2/2024. This growth was driven primarily by a significant expansion in the pet food business, which helped offset revenue declines in aquafeed, tuna, and frozen seafood.

Net profit for Q3/2024 stood at THB 235 million, a 51.1% increase from THB 156 million in the same quarter last year, although slightly lower by 7.6% compared to THB 254 million in the previous quarter. This strong performance was supported by continued growth in the pet food business, achieving a gross profit margin of 17.1%, up from 15.6% in the same quarter last year. Net profit margin for the quarter was 8.5%, while earnings per share (EPS) rose to THB 0.29, compared to THB 0.19 in the same period last year.

"During Q3/2024, the pet food business showed strong growth, driven by recovering demand in key markets such as the US and Europe. The tuna business saw an increase in export volumes compared to the previous quarter due to lower raw material costs. However, frozen seafood, particularly frozen squid exports to Europe, faced weaker demand. Value-added seafood products, however, continued to perform well in both the US and Europe," said Akamon.

For the first nine months of 2024, ASIAN reported total revenue of THB 8.073 billion, a 13% increase from THB 7.146 billion in the same period last year. Net profit for the nine-month period surged to THB 735 million, up 232% from THB 222 million, with a gross profit margin of 18.5% compared to 12.2% last year. The net profit margin rose to 9.1% from 3.1%, while EPS increased to THB 0.90 from THB 0.27.

The company maintained its full-year gross profit margin target of 17-18%, supported by the pet food business, which is expected to generate THB 5.7 billion in revenue. This growth was driven by consistent order growth over the past nine months and increased production capacity to 56,000 tons per year since late 2023. Despite global economic slowdowns affecting demand for premium pet food, the company continued to receive positive responses from key markets like the US and Europe. However, competition remains intense for its branded pet food products sold in Thailand and China. ASIAN is expanding distribution channels through online platforms and modern trade to capture more market opportunities.

The tuna business is expected to generate approximately THB 800 million in revenue this year. Although sales are projected to decline by 24% from last year, the Middle East remains a key market due to its strong purchasing power and preference for tuna products. Despite volatile tuna prices, ASIAN continues to focus on efficient raw material and cost management to maintain its margins.

Revenue for the aquafeed business has been revised down to THB 800 million from THB 1.1 billion due to the suspension of fish feed production since Q3 and stagnant shrimp output compared to the previous year. ASIAN is addressing market challenges by focusing on cost management, tightening credit control, and accelerating debt collection to preserve profitability.

The frozen seafood business is projected to meet its revenue target of THB 2.9 billion. Although sales volumes slowed in the first nine months, particularly in Europe, key markets such as the US, Italy, Japan, and Australia continue to drive performance. While geopolitical conflicts, trade competition, and unpredictable weather remain risks, the company anticipates a recovery in value-added product sales in the US during the year's final quarter.

In the first nine months of 2024, ASIAN invested THB 245 million, below the planned budget of THB 535 million. The delay in the second automated warehouse project to early 2025 contributed to the reduced spending. Of the total investment, THB 172 million was allocated to the pet food business, THB 44 million to the aquafeed business for machinery upgrades, and THB 29 million to the frozen seafood business to improve operational efficiency.