SET-listed Neo Corporate plans to focus on the premium market and exports for double-digit growth annually over the next five years, after registering revenue growth that beat the market average in all three categories of fast-moving consumer goods (FMCG) last year.
Patama Thakolsri, deputy chief executive of commercial at Neo, said the company aims to be a leading FMCG brand in the region through an extensive product line-up, covering all market segments.
The company has eight brands covering three categories, comprising household goods, personal care, and baby and children's products, with a total of 1,100 items.
In the first half, the company reported 4.96 billion baht in revenue, an 8.6% increase from last year. Household goods contributed the majority with more than 41%, followed by 32% from baby and children's items, and 27% personal care products.
Gross profit improved 23.2% year-on-year to 2.3 billion baht. In the second quarter alone, the company recorded the highest quarterly gross profit margin at 46.8%, attributed to expense optimisation.
Mrs Patama said three product categories could outperform the market average between 2022 and 2023.
Baby and children's products, with a market share of 74%, could grow sales by 10.4%, compared with the industry rate of 7.6%, she said.
Neo is also adding more premium products to tap high-spending consumers and the growing health and wellness trend, as this segment offers higher margins compared with mass products, said Mrs Patama.
This year, premium products should contribute 5% of total revenue, rising to 10% by 2026, she said.
In the first half, the company launched several new premium products, such as D-nee Deluxe, which targets older consumers.
Mrs Patama said the company would be more aggressive in its expansion overseas. It plans to distribute products to 28 countries by 2028, up from 16 last year.
Typically the company enters markets via its baby and children's care brand D-Nee, which accounts for 80% of sales in foreign markets.
Neo hopes to penetrate seven new markets this year, particularly in South Asia and the Middle East, as Qatar, Bahrain and Pakistan have high birth rates.
Vietnam accounts for the largest share of the company's exports at more than 50%.
