SET-listed Taokaenoi Food & Marketing Plc (TKN), the maker of Taokaenoi seaweed snack, has revised up its revenue projection this year after a healthy performance in the first half.
TKN reported first-half revenue of 2.14 billion baht, a 41.5% rise from the same period last year, with net profit up by 174% year-on-year to 345 million baht.
The robust growth was attributed to strong consumption in the domestic and overseas markets, according to Itthipat Peeradechapan, TKN's chief executive.
He said domestic sales revenue in the first half of the year grew by 19%, far higher than the 1-2% growth for the entire snacks market.
Chinese tourists who visited Thailand and bought Taokaenoi seaweed as souvenirs helped boost local sales significantly.
Meanwhile, its overseas business showed 68% growth in the first half, with China accounting for a large share.
The solid first-half performance prompted the company to adjust up revenue for the entire year to 4.3 billion baht -- growth of 25% over the year before. The new target is much higher than the 10-15% growth for 3.8 billion baht revenue set early this year.
Mr Itthipat said about 45% of the expected 4.3 billion baht revenue this year will come from the domestic market, while exports to 42 countries worldwide, mainly in Asia, will account for the balance.
Besides the strong demand from both domestic and overseas markets, he said TKN will still pursue marketing campaigns to ensure the company meets this year's target.
TKN has earmarked some 30 million baht to support "The War Elephants", Thailand's national football team, in their ambitious goal to take part in the World Cup in the future.
Such a marketing campaign appeals to the lifestyle of young people who play sports and favour healthy food.
The sponsorship of the Thai team allows Taokaenoi logos to be displayed at football stadiums in countries where the Thai squad plays in the 12-team Asian qualifying rounds for the World Cup 2018.
Apart from sport marketing, TKN has also hired actress Davika "Mai" Hoorne as one its new presenters to woo the young generation.
Mr Itthipat expects the snack market this year to increase by 5% on top of the 30 billion baht reported in 2015, after the market increased by 3% in the first half. Only the seaweed snack market showed a slow expansion of 1-2% in the first six months.
TKN plans to open a new seaweed snack factory in Ayutthaya's Rojana Industrial Estate next year. The facility will double the company's annual production capacity to 12,000 tonnes.
This is part of the strategy to boost exports to cover new markets such as India, the US and Europe and fulfil Mr Itthipat's dream of making Taokaenoi a global brand within 2024 and become the leading seaweed snack brand in Asean within the next 3-4 years.
Krungsri Securities analyst Songklod Wongchai said TKN's sport marketing is a worthwhile investment as consumer products rely on marketing campaigns to boost sales.
"Marketing campaigns are necessary for consumer products as they can help maintain or increase market share. It is also crucial for TKN, which has many competitors in the snacks market," he said.
The company's business outlook is promising as its expansion into China and its new production capacity, which is set to come on stream early next year, will be major growth drivers, he said.
TKN's 185-million-baht net profit for the three months to June hit a record high for a sixth straight quarter. Its second-quarter net profit surged 146% over the same period a year before.