RS confident of clear bank debt repayment terms by Q2 2025

Surachai Chetchotisak, Executive Director and CEO of RS Public Company Limited (RS), stated that the current overall economic situation remains challenging. Alongside this, the industry faces rapid changes and intense competition, creating external difficulties. Internally, the company group has struggled to meet the loan agreement conditions with financial institutions. As of March 31, 2025, RS and its subsidiaries defaulted on interest payments totalling 27.48 million baht.

RS currently holds THB831.32 million in long-term loans and THB940.20 million in short-term loans, while its subsidiaries have THB878.57 million in long-term and THB225.23 million in short-term loans. On May 19, 2025, the company was flagged with a “CB” symbol, requiring a meeting to update investors and stakeholders within 15 days.

As a major shareholder, Surachai remains fully committed to solving these issues and driving the business turnaround. The company has implemented immediate measures to address the “C” warning symbol, including:

Regarding debt restructuring, continuous negotiations have been held with financial institutions to find a mutually suitable debt management approach. This includes considering adjustments to the repayment terms based primarily on the company’s repayment capacity aligned with its current liquidity. The company is confident that these negotiations for financial assistance will be concluded by June–July 2025, or in Q2 2025.

Additionally, RS is enhancing cost management and expense control to improve profitability and cash flow, expecting to reduce overall costs by approximately THB400–450 million per year.

Key measures include:

Streamlining workforce structure to better align with business operations, such as eliminating redundant positions and enhancing employee capabilities

Downsizing non-essential office space

Implementing more efficient expense controls consistent with core business activities, for example, capping marketing and advertising budgets at no more than 10% of total revenue, which is expected to reduce selling expenses by about THB150 million this year compared to last year

The company also plans to divest non-core assets to urgently improve financial liquidity. This involves selling assets outside the core business group, such as subsidiaries or brands not aligned with the main strategy but still possessing market value and positive business prospects, such as the pet business. The company expects proceeds from these sales to range from THB 250 to 350 million.

Furthermore, RS and its subsidiaries have accelerated adjustments to their business strategies to maintain efficient cash flow and liquidity across the group. The company is currently developing short, medium, and long-term business plans focused on a swift turnaround and recovery.

Surachai stated that the company will refocus on certain promising and future-oriented businesses, while divesting others that are not suitable under the current circumstances. Progress in this area is well underway and is expected to generate cash flow, reduce costs further, and improve overall financial flexibility. To date, the company has achieved cost savings of approximately THB450 million.

“My team and I remain fully committed to managing and resolving the situation through all necessary actions, including financial restructuring and strategic business adjustments. We aim to achieve the fastest possible turnaround for the greatest benefit of the company, shareholders, and all stakeholders. I am confident we will overcome this period and recover soon,” he said.