EPG outlines FY23/24 business plan with a 10% sales growth target from ready-to-profit new products
Dr Pawat Vitoorapakorn, Chief Executive Officer of Eastern Polymer Group Public Company Limited or EPG, the world's leading manufacturer and distributor of polymer and processed plastic products, recently stated that the world currently faces a situation that causes volatility, uncertainty, and complexity.
Although the global economy is recovering, there are still concerns to be aware of, such as geopolitical conflicts, inflation, energy costs, and climate change.
As a result, EPG's global market presence is a key challenge, with the goal of expanding further in fiscal year 23/24 (April 23 - March 24). The company's primary focus is on operations as seen below.
1) Achieve an Organic Growth: With existing products and innovative products in all business segments certified to several significant standards, the company is able to respond to the needs of customers comprehensively, assisting in the retention of existing customers while expanding to new customer groups. We also search for key strengths in each business group, including how to increase production efficiency and how to reduce costs, etc.
2) Be committed to R&D and the creation of innovative products for New S-Curve to support our core businesses and to create new potential businesses in the future.
3) Synergize business in Australia for a turnaround.
4) Establish long-term goals of "Net Zero" greenhouse gas emissions by 2042. During the previous fiscal year, the subsidiary installed a solar roof top with a total power capacity of about 18 MW, and the company has planned its production for this fiscal year to support the use of solar energy for maximum value and efficiency.
In fiscal year 23/24, EPG expects a 10% increase in revenue and a gross margin of 30 - 33% from the following three business segments:
The Aeroflex thermal insulation company plans to grow sales by 8-10% by offering premium quality products and new models for Ultra Low Temperature Insulation and Air Ducting systems that have been warmly welcomed in the United States, with a focus on domestic and Japanese markets. Aeroflex insulation passes energy-saving and environmental requirements, validating the product's carbon footprint. Furthermore, Aeroflex plans on issuing a license to market certain Aeroflex insulation in Europe, as well as preparing to submit Aeroflex insulation for testing to attain the highest safety standards of fireproof material in Europe and establish a long-term goal to achieve "Net Zero" greenhouse gas emissions by 2042.
The Aeroklas brand's automotive parts and accessories business aims for 8-10% sales growth through new product development with European, Asian, and American automobile OEMs that have recently introduced their products to the market. With expertise in manufacturing automotive parts from polymers and plastics to make them lightweight, durable, and meet safety standards, Aeroklas has a project to develop innovative products for both ICE and EV vehicles in partnership with automotive companies to continuously build new S-Curve products.
There has been a business restructure for Australian business under Aeroklas, Asia Pacific Group (AAPG) to encourage the synergy of all businesses and brands in Australia by using our well-prepared capabilities to increase sales and control costs for a business turnaround in Australia as quickly as possible.
The EPP plastic and packaging business aims for a 8-10% sales increase by accelerating capacity utilization. EPP has introduced new packaging to the market, such as TF food boxes to replace foam boxes. In addition, all plastic containers for food must comply with Thai Industrial Standard (TIS) TIS 655 for plastic containers and utensils and TIS 2593 for plastic food containers for microwave ovens, which are effective on January 3, 2023, and EPP has been fully licensed to industrial standards. Moreover, EPP has adjusted its marketing strategy by cross selling products in both premium plastic packaging and general products to fulfil the demands of all target customers.
Besides, EPG Innovation Center Co., Ltd. not only supports its three core businesses by developing innovative products in the New S-Curve, but also undertakes research and development to produce innovative products for new business segments in the future.
Dr Pawat further stated that the company has allocated an investment budget of 450 million baht for fiscal year 23/24 (April 23 - March 24) for product development and additional machine investment for new product lines. Furthermore, at its meeting on May 26, 2023, the Board of Directors resolved to propose to the 2023 Annual General Meeting of Shareholders to consider and approve the issuance and offering of additional debentures in the amount of not exceeding 1,000 million baht, in addition to the existing company's credit limit for issuance and offering of debentures which did not exceed 2,000 million baht. As a result, the total amount of debentures that the company can issue, and offer is not exceeding 3,000 million baht to finance current operations or future business growth.
