Mr Matap Tor. Suwan, managing director of After You Public Company Limited, or AU, Thailand's phenomenal dessert provider, revealed that AU's stock has now traded on the Market for Alternative Investment (MAI) under the ticker symbol "AU", and expressed confidence that the stock will attract high interests from the investors, after the better-than-expected outcomes of the initial public offering (IPO) of 165 million shares (par value: THB 0.10 each) to institutional and retail investors at THB 4.50 per share.
AU has two business segments: (i) "After You" dessert cafes and "Maygori" shaved ice cafes and (ii) events organising and production of AU brands of products for supply to businesses. It seeks to increase the number of "After You" and "Maygori" cafes from currently 20 to 30 by 2018. While new branches will be situated mainly in Greater Bangkok, a feasibility study is being conducted on possible operation of branches in provincial cities. For each new branch, AU will reach the break-event point in one or two years, depending on location, size and purchasing power. AU is also looking to increase marketing channels to partners. It will install new machinery, tools and equipment within its plant to replace humans. It will also conclude long-term (rather than short-term) leases for the new branches, build a new office, a staff training centre and a distribution centre in Bangkok's Phatthanakan area and upgrade the information technology (IT) systems to enhance operating efficiency.
"After the MAI listing, we will take a further step towards a leader position in integrated dessert and bakery business by opening new branches countrywide, including in provincial cities. We will continue to introduce innovative dessert products on a regular basis to ensure products variety. And our production capacity will be improved after a relocation of the main kitchen facilities from the plant on Phatthanakan Road to a new one, with an aggregate 5,000 sq.m. space, in Sinsakhon Industrial Estate, Samut Sakhon Province, which is aimed at supporting growths," he said.
Mr Pichet Sitthi-amnuay, executive chairman of Bualuang Securities Public Company Limited, as Financial Advisor and Lead Underwriter, highlighted AU's potential to secure leadership in dessert and bakery business as reflected in the company's outstanding performances. In 2013, 2014 and 2015, it recorded THB 188.9 million, THB 311.6 million and THB 414.9 million in total revenue (CAGR: 48.2%) and THB 5.6 million, THB 45.8 million and THB 57.5 million in net profit, respectively. And for the first nine months (Jan-Sep) of 2016, it posted a total revenue of THB 440.9 million, a 54.1% y-o-y rise from THB 286.2 million, and a net profit of THB 75 million, a 101.6% y-o-y jump from THB 37.2 million.
The sharp jump over the first nine months of 2016 was achieved by a 14.5% rise in sales driven by the popularity of Kakigori shaved ice products and newly launched items which led to frequent visits by both existing and new customers, as well as by the inauguration of six new branches and more effective control of costs and selling and administrative expenses.