At A Glance

Corporate November 11, 2017 01:00

By The Nation

CENTRAL DEPARTMENT STORE SET FOR 70TH ANNIVERSARY CELEBRATIONS



Sirikate Chirakiti,the co-president of Central Department Store Limited, said celebrates “Central 70th Anniversary”. The store will deck up every corner of Central Chidlom (from November 16-20) and Central Embassy (from November 16-26) with over a million vibrant flowers. The store will offer special promotions of up to 30-per-cent discount on counter branded products and a further discount of up to 25 per cent via The 1 Card and participating credit cards from November 16 to December 6.

 

Malee targets 30-per-cent growth next year

Malee Group Public Company Limited has announced an increase in sales and profit in the third quarter from the second quarter of this year, thanks to the recovery in most business segments, while cost per unit decreased quarter on quarter due to higher capacity utilisation. The company will continue to move towards overseas business and expects a 30 per cent growth next year.

Roongchat Boonyarat, chief operating officer said in the third quarter of this year, the company and its subsidiaries recorded total sales of Bt1.5 billion, a decrease of 15 per ceent year on year due to the slowdown of domestic branded sales and export contract manufacturing (CMG) sales. However, growth in export branded sales continues by 60 per cent year on year, while domestic CMG are back on track from recovered sales plus good feedback on new products.

“Our sales in the third quarter grew 9 per cent quarter on quarter due to 1) Domestic branded fruit juice sales increased 30 per cent quarter-on-quarter after the new packaging launch; 2) Domestic branded canned fruit sales expanded 50 per cent quarter on quarter after the start of new crop season; 3) Domestic CMG sales were back on track with good response on new products; and 4) Continual growth of export branded sales.”

“Net profit in the third quarter this year was Bt78 million, a decrease of 52 per cent year on year due to higher cost per unit resulting from lower capacity utilisation, while during 2015-2017, the company has been building its foundation and preparing in all areas for future growth. The past three years are the first phase of the company’s nine-year business strategy. 

Throughout these first three years starting 2015, the company has been investing in various key projects, including plant facilities and machinery enhancement, new subsidiary company establishment, as well as joint venture investments with both domestic and international business partners. These investments resulted in higher fixed costs compared to total sales, with sales not generated immediately, but this will be just a temporary issue. The company believes that these fundamental investments are crucial and necessary, as they will help drive company growth sharply, following the second pahse of its strategic plan from 2018-2020,” Roongchat said.

 Gulf Energy on the move 

Gulf Energy Development PCL, one of Thailand’s largest independent power producers, is preparing to increase its investments in two gas-fired power plants (5,300 MW), which are under a joint development agreement with Mitsui, from 51 per cent to 70 per cent, in line with the company’s plan to invest and develop gas-fired power plants to support its earnings growth in the long run. The initial IPO price range has been set at Bt40.0 – Bt45.0 per share, which reflects the company’s clear business strategies, continuous business development plans and robust operational performance.

Porntipa Chinvetkitvanit, president of Gulf Energy Development Plc, disclosed that the company is in the process of increasing its shareholding in Independent Power Development Co. Ltd (IPD), a joint venture between GULF and Mitsui, which is developing two gas-fired IPPs, with a total capacity of 5,300 megawatts (MW), that are scheduled to begin their commercial operations in 2021-2024. 

The process to increase the company’s shareholding in IPD is taking place after the shareholders of IPD had a resolution to issue 198,866,667 new shares at a par value of Bt10 each during the extraordinary general meeting held recently . Mitsui, which currently holds 49.0 per cent in IPD, has waived its rights to subscribe the new shares, consistent with the joint venture agreement between GULF and Mitsui to allow GULF to increase its shareholding in IPD from 51 per cent at present to 70 per cent. However, under this arrangement, GULF will be entitled to 75 per cent of IPD’s dividends. GULF has oversubscribed the new shares, which in effect will increase its shareholdings in IPD to 70 per cent once the registration of IPD’s capital increase is completed. It is also in the process of arranging for its entitlement to the additional 5.0 per cent of dividends from IPD, which is expected to be completed by February 28, 2018.

As of November 1 this year, GULF has gas-fired power plants and rooftop solar projects in operation with a total installed capacity of 4,772.1 MW. The company is also developing a number of gas-fired power projects to add another 6,353.6 MW to its existing portfolio by 2024. During the first nine months of this year, the company has posted a total revenue of Bt1.96 billion, a jump of more than ten times from the same period last year when its revenue was Bt156.2 million. While its net profit during the first nine months of this year topped Bt2.73 billion marking an increase of over 400 per cent from the same period last year when its net profit was Bt500 million.

Colgate Naturals due 

Colgate-Palmolive (Thailand) Co Ltd, Thailand’s leading manufacturer in the toothpaste market, has sets aside more than Bt100 million for the launch of “Colgate Naturals” toothpaste. The new product features three formulas that reveal your healthy smiles inspired by nature. The company also aims to expand its business in the toothpaste market in response to the trend of modern consumers who are seeking natural products through the implementation of multi-channel and touchpoint marketing communication strategies.

In 2017, the toothpaste market is expected to be valued at over Bt9.1 billion, with Colgate remaining the market leader with over 40 per cent market share in the Thai market. Meanwhile, the company’s premium-priced toothpastes containing natural ingredients that offer the benefits demanded by modern consumers will continue their growth momentum in the market.

Jaturaporn Thanapornsungsuth, Marketing Director – Oral Care Thailand for Colgate-Palmolive (Thailand), said, “To meet consumer needs, which are increasingly focused on products made from natural ingredients, and to strengthen our leadership in the toothpaste market, Colgate will introduce ‘Colgate Naturals’ toothpaste in three formulas for your healthy smiles inspired by nature. The three new formulas are ‘Colgate Naturals Real White’ with seaweed extract and crystalline salt for naturally white teeth, ‘Colgate Naturals Gum Comfort’ with tea tree oil and aloe vera extract for healthy gums and teeth, and ‘Colgate Naturals Pure Fresh’ with lemon oil and aloe vera extract which will leave your mouth feeling clean and fresh.”

Colgate Palmolive (Thailand) will invest over Bt100 million baht for the launch of “Colgate Naturals” with a focus on delivering multi-touchpoint communication strategies. A TV commercial, which aired starting on November 8, 2017, and online via www.facebook.com/ColgateThailand, will serve as an important way to communicate information, activities and promotions, while Influencer Marketing through key opinion leaders who lead a healthy lifestyle will reach targeted consumers and build effective word-of-mouth advertising. Partnerships with leading stores have been| established concurrently to initiate effective publicity and sales promotions to magnify Colgate’s global leadership.

Q3 net profit jumps 71% 

Banpu Power Public Company Limited (BPP), a leading Asian power-generating company operating both conventional and renewable power assets across Asia, has reported its operating results for Q3/2017 with EBITDA (earnings before interest, tax, depreciation and amortisation) of Bt1.17 billion, a 40-per cent increase compared to last year at Bt842 million. The total net profit is Bt838 million or a 71-per cent increase over the same period last year at Bt489 million and reflects a strong and consistent operational performance. Banpu Power is developing all projects in line with the company’s greener strategy as well as balanced growth in conventional and renewable power generation to achieve a total equity-based capacity of 4,300 MWe, of which a minimum of 20 per cent will be renewables-based, by the end of 2025.

Voravudhi Linananda, chief executive officer of Banpu Power, said “We continue to see strong and steady operating results. Hongsa and BLCP Power Plant have stable operational performance despite the planned maintenance outage, especially Hongsa which achieved a satisfactory level of Equivalent Availability Factor (EAF) of 82 per cent. Solar power plants in China have contributed consistent revenue to Banpu Power despite high rainfall in the current quarter. 

Meanwhile, we still keep delivering power-generating capacity growth in our pipeline according to the greener strategy. Recently, we acquired the rights to develop the 200 MW “Yamagata Iida” solar project in Japan which is expected to start commercial operation in 2023.

In Q3/2017, the company recorded Bt978 million in total equity income from joint ventures, a 91-per cent increase year-on-year, mainly from BLCP’s equity income of Bt391 million (including translation loss of Bt73 million) and Hongsa’s equity income of Bt595 million (including translation loss of Bt284 million). 

In China, the three combined heat and power plants (CHP) in Luannan, Zhengding and Zouping generated revenue of Bt1.14 billion, a 15-per cent increase yoy while solar power plants contributed revenue of Bt182 million.