THIP’s 2020 profit grows 42% with a revenue of 3,197 million baht.February 24, 2021
THIP’s 2020 profit grows 42% with a revenue of 3,197 million baht. We have planned to increase production capacity to address the demand of Southeast Asia market in 2021
Thantawan Industry PLC. or THIP has a great performance in 2020 with a profit of 347.8 million baht, 42.2% growth, from the previous year. Revenue is 3,196.7 million baht, 5.6% growth, as order increment. We provide products addressing the changes in new consumer buying behaviors, especially hygienic issues for both domestic and international market. All THIP’s products under the SUN brand, including SUNMUM and SUNBIO, are also reinforced to be more well-known. We set business goals in 2021 to expand production capacity by an additional 20% to support the increment demand from foreign customers. We are preparing to launch new products in Q1 of 2021 for South East Asia market.
Mrs. Pojanard Prinyapatpakorn, Chief Executive Officer of Thantawan Industry Public Co., Ltd or THIP which is a manufacturer and distributor of international quality packaging, said the COVID-19 epidemic in 2020 strongly affected demand since the demand in the first half of 2020 is lower than normal. However, in the second half of the year, many countries have adapted themselves to this situation properly. Order volume was, therefore, return. We also found the reusable packaging products have a high demand in the market, especially during the lockdown period since our customers pay more attention to hygiene.
As the annual report 2020, net profit was 347.8 million baht, an increase of 103.3 million baht or 42.2% compared to the same period of 20219 in which net profit was 244.5 million baht. Net profit per share in 2020 was 4.35 baht per share, increasing from 2019 at net profit per share of 3.06 baht per share. Total revenue from sales was 3,196.7 million baht which increased 170.8 million baht or 5.6% from 2019 (total revenue in 2019 was 3,025.9 million baht).
The gross profit margin was 23.52% per sales increase compared to the same period of the previous year at 19.87%, which is increased by the sales increment of bags at 9.2% and others product at 5.3% since our product address customer needs in terms of hygiene concerns. In addition, the new behavior that people plentifully prefer to stay at home. The company also expanded the market, especially in USA. It led to a high order volume consecutively. In addition, we have a good cost optimization as the result of global raw material prices decrease and the efficient production line improved.
2021 business plan, THIP expects the performance will massively grow through the ongoing orders from overseas. Branding is an important strategy for us by promoting our own brand and products, under the SUN brand, to be more recognizable. Many marketing channels to cover and reach all target groups are utilized including social media, website www.sunmumshopping.com and various exhibitions
The key strategy of THIP still focuses on branding. There are 3 main groups addressing different customer needs: 1. SUNMUM, a leader in mother and child care products, will offer new innovations for mothers to take care of their baby with the more convenience of taking care of their children both inside and outside the house. 2.SUNECO STRAW, portable drinking straw, will create new products meeting the new normal lifestyle. It emphasizes cleanliness and hygiene, as personal equipment and portable reusable tubes. 3.SUNBIN eco-friendly garbage bag is made by 100% recycled materials, targeting hypermarkets such as Big C, Lotus,” Mrs. Pojanardsaid.
For online channels, we focus on an increment of convenience, accessibility, and expanding online sales to other platforms such as Line Official Account, Facebook Page, etc. In 2020, online channels grew by 142.66%. Meanwhile the year 2021, we focus on a full online marketplace serving the new normal era.
THIP is preparing to launch new products in 1Q/2021 regarding the mother and baby product line (SUN Mum & Baby). This year, the company plans to expand the market in Southeast Asia including Vietnam, Indonesia, Philippines and India. We have recently set up a distributor office in the aforementioned countries, the United States and European zone. As the trend of mother and child care products continued to expand, it is a key factor for demand growth in plastic packaging.
Besides, the company plans to expand its production capacity by 20% to support the increment demand of overseas customers and new customer marketing for long-term growth.