S Khonkaen Foods eyes halah sales overseas
S Khonkaen Foods generated Bt587 million in sales and net profit of Bt23.8 million in the second quarter on the back of strong sales of regional food products and snacks.
The listed company plans to tap the halal foods sector of Muslim nations in the final quarter, as well as add new food items to the menu and more quick-service outlets to achieve its sales revenue target for the year.
Chareon Rujirasopon, chief executive officer of the manufacturer and distributor of processed food made from pork and chicken, processed seafood, meat-based snacks, ready-to-eat frozen meals, and operator of quick-service restaurants, said second-quarter sales exceeded the Bt550 million generated in the same period last year by 7 per cent.
He attributed S Khonkaen Foods’ improved net profit of Bt23.8 million, which was 1 per cent higher than the Bt23.6 million earned in the second quarter last year, to 12 per cent higher sales of regional food products, and new products with reasonable prices, which were well-received given the weak level of consumer purchasing power.
Snacks
Sales of snack foods rose by 26 per cent due to the company’s value-added strategy, while there was 67-per-cent growth from S Khonkaen Foods’ quick-service restaurants – Yunan for pork-leg stew and rice, and Zaap Express for northeastern foods.
The company also added six new restaurants to its 36 outlets during the quarter.
Sales and net-profit growth in the quarter helped boost first-half sales to Bt1.15 billion, up 7 per cent over the same period last year, while net profit was Bt2.8 million or 5 per cent higher.
S Khonkaen Foods was able to post good operating results for both the second quarter and the first six months despite the ongoing sluggish Thai economy and weak consumer purchasing power, thanks to the addition of new regional products and reasonably priced snacks, said the CEO.
As for the second half of this year, the company plans to tap the halal foods market in Muslim countries in Asean, the Middle East as well as China in the fourth quarter, starting with halal-certified seafood and chicken-based snacks, before proceeding to processed seafood and chicken products, he added.
