Oishi Group hopes for 23% surge in sales to Bt15 bn

Corporate February 27, 2014 00:00


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OISHI GROUP expects to buoy sales by at least 23 per cent to about Bt15 billion this year, faster than last year's 5-per-cent rise to Bt12.21 billion.

President Marut Buranasetkul said yesterday that the company’s business plan this year was to maintain the growth of the past several years in profits and revenues of its beverage and food businesses. 
Chitkasem Moo-Ming, vice president for finance and accounting, said food sales last year were Bt5.976 billion, or 49 per cent of gross sales, and beverage sales were Bt6.23 billion, or 51 per cent of gross. The prime driver of sales growth was the expansion of restaurants to 43 branches. 
The company reported annual net profit of Bt456 million. Excluding an extraordinary loss of Bt100 million realised from revised flood compensation, net profit would have been Bt556 million.
This year’s capital expenditure budget has been set at Bt2 billion for production capacity and restaurant-chain expansion. 
Sam Paisarn Aowsathaporn, executive vice president for food, said that late last year the company pumped more than Bt50 million into expanding its services to secondary markets such as Buri Ram and Surin by opening four branches of its popular Japanese restaurants, both Shabushi by Oishi and Oishi Ramen. 
This has given Oishi a share of 27-30 per cent of the Bt22-billion Japanese-restaurant market.
This year the company targets sales at Bt7.7 billion on continued expansion. It plans to add 50 branches at a cost of about Bt600 million. There will be expansions in other countries, starting with two in Yangon and Mandalay in Myanmar, next quarter.
Jesdakorn Taratip, vice president for beverages, said that last year the company maintained its leadership of the ready-to-drink green-tea market, covering all distribution channels. Its sales of Bt6.23 billion were good for a market share of 43.5 per cent, surging past the second-place player with 23.4 per cent.
This year the beverage business aims for growth of 18 per cent.
The company hopes to deliver its green-tea beverages to new markets, particularly in the Middle East and Europe. It will also enhance brand awareness in Asean nations including Malaysia, where Oishi is available through a solid network of distributors including Fraser and Neave and InterBev.