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Published on February 13, 2008

The group's performance was buoyed by higher sales, lower costs and a Bt69-million gain from selling its Log Home property in Bangkok.

The Japanese restaurant chain with 85 restaurants across the country and a brand of ready-to-drink green tea holds about a 70-per-cent share of the Thai green-tea market. Its result runs counter to the predominant economic mood of gloom and sluggish growth.

Oishi yesterday told the Stock Exchange of Thailand its sales revenue rose at an annual rate of 16.1 per cent last year, to Bt4.59 billion.

"The increase came mainly from an 18.5-per-cent increase in revenue from the beverage business, due to promotional campaigns. Revenue from food operations increased 13.1 per cent, due to the opening of 10 more branches last year and the renovation of old ones," it said.

The 10 new outlets included one Buffet, five Shabushi and four Delco branches.

Of sales revenue, Bt2.04 billion, or 44.5 per cent, was generated by Oishi's food business and the rest by beverages.

Lower costs of sales and selling and administrative expenses also boosted Oishi's bottom line for last year. The company's cost of sales fell from 66.6 per cent of total sales in 2006 to 64.8 per cent last year. Selling and administrative expenses also declined, from 28.4 per cent of total sales to 24.5 per cent.

Kim Eng Securities has maintained its "buy" recommendation on Oishi Group shares, with a fair value if Bt33.30 apiece.

The broker predicts Oishi will record revenue of Bt4.77 billion for a net profit of Bt500 million this year.

The Nation