Taokaenoi Food & Marketing Plc (TKN), a seaweed snack giant, reported its third-quarter earnings this week, with a 29 per cent increase in Q3 profits year-on-year.
Jirapong Suntipiromkul, Taokaenoi’s Deputy Managing Director, said that the company saw profits of 88.9 million baht in the third quarter, up by 29 percent compared to the same period last year.
Net profit through the first 9 months stood at 263.5 million baht or an increase of 2 per cent year-on-year.
According to the statement, the seaweed company has successfully reduced its distribution cost and administrative expenses by 23 per cent.
Despite the jump in its profits, Taokaenoi’s total revenue from its product sale has declined in all sectors. The company reported 22.8 per cent drop in total revenues year-on-year for the third quarter and 19.5 per cent decrease for the year.
Domestic sales revenue decreased by 41.7 per cent to 319.7 million baht mostly due to the loss in customers in the retail market and also the travel restrictions which has decreased its potential clientele. Revenues from tourists account for more than 25 per cent of Taokaenoi sales.
“The company is affected by the local tourism industry, which has caused the operating loss in its affiliated companies in retail and restaurant businesses (Taokaenoi Land and Hinoya Curry Shops),” said Jirapong.
The company’s overseas market saw an 8.3 per cent decline to 659 million baht.
After Tuesday’s trade ended, TKN shares closed at 10.40 baht per share, dropping 0.8 baht or -7.14 per cent, with a transaction value of 327 million baht.
Analysts from Asia Plus securities rates ‘Buy” on TKN as the company would perform well in the China market.
TKN’s profits are likely to grow in the fourth quarter thanks to a market recovery in China and the upcoming high season, said Asia Plus analysts.