S. Khonkaen Foods Plc, a producer and distributor of processed food products, plans to earmark an investment of 300 million baht for the upcoming year to bolster its domestic and international operations.
Jarunpoj Rujirasopon, chief executive of international business, said the investment would primarily be used to automate production to cope with the imminent hike in the daily minimum wage, with a portion of the funds dedicated to the company's expansion endeavours in China.
The company is holding talks with Chinese state enterprises and traders to expand the products it plans to sell there next year, such as fermented pork.
S. Khonkaen anticipates sales of 5 million yuan in the inaugural year of operations, with a business model for China finalised by late next year.
Mr Jarunpoj said S. Khonkaen also plans to introduce some of its popular products, including meatballs and Isan-style sausages, to the US market.
Mr Jaraspon says the outlook for pork products improved in the first quarter of next year as the smuggling problem was addressed.
In Europe, the company aims to distribute its existing products to Asian food service chain stores and restaurant chains, in addition to the Asian groceries it began supplying many years ago.
S. Khonkaen Foods is also expanding its seafood fish ball product line into countries where hot pot cuisine is popular. Target markets include China, Taiwan, South Korea, Japan, Singapore and Malaysia.
Jaraspon Rujirasopon, chief executive of domestic business, said the outlook for the pork business in the first quarter of 2024 is expected to improve as the smuggling problem has been addressed.
Mr Jaraspon said the company would grow its business in the domestic market through five strategies, including expanding the presence of its products at traditional trade and wet markets.
Starting next year, the company's new distribution partner plans to support the growth via traditional trade, introducing new products within a price range of 10-20 baht in this segment, he said.
In addition, Mr Jaraspon said greater efforts will be made to increase sales in wet markets by leveraging the existing customer base of Mahachai Foods Co, which is a subsidiary of S. Khonkaen.
He said the company hopes it achieved profitability from its quick-service restaurant (QSR) business during some months of this year. It aims to break even during the first quarter of 2024.
To strengthen the S. Khonkaen brand, the company plans to venture into new product categories, increase consumer engagement, and enhance the efficiency and performance of its farm through product mix management.
With these strategies, the company expects to post double-digit revenue growth in 2024.
Revenue this year is projected to be flat compared with 2022, according to S. Khonkaen Foods.
For the first nine months of 2023, the company reported revenue of 2.3 billion baht, down 0.9% year-on-year, with a net profit of 42.2 million baht, a decline of 49.1%.