EPG Discloses its business plan for 2018/2019, targeting 15% revenue growth worth more than 10,000 million baht with New S-Curve Strategy

Stocks and Financial Services Press Releases Monday June 4, 2018 14:12
Bangkok--4 Jun--Worklink PR

EPG Discloses its business plan for 2018/2019, targeting 15% revenue growth worth more than 10,000 million baht with New S-Curve Strategy for every group of business in order to increase margin and to expand its market to cover all groups of customer across the world

Dr. Pawat Vitoorapakorn, CEO of The Eastern Polymer Group Pcl., (EPG) the world's leading manufacturer and distributor of polymer and plastic processing disclosed the operating plan for 2018/2019 (April 2018 – March 2019) with the revenue growth target of 15%, which expected to generate revenue from sale more than 10,000 million Baht with the New S-Curve strategy to serve the sustainable growth of the 3 business groups, focusing on innovative product development and product manufacturing technology development to reduce cost and increase production efficiency, introduction of new products to the market, as well as using strategy for pricing and cost management in order to receive the results as planned, and placing an emphasis upon additional oversea market expansions.

As for the thermal insulation business under the brand AEROFLEX, the Company had already invested in the high-speed automation production line in the US with the objective to expand its new customer base such as office buildings, industrial factories, and residences, etc. In addition, there had been a gradual adjustment of insulation prices to mitigate the impact of the Baht appreciation.

The Company had also invested in new factory expansion to enhance capacity of EPDM insulation production at around 250 million Baht, of which the construction of the project was started in April 2018. However, the roof insulator product, Aero-Roof, was expected to expand its distribution channel to modern trades and construction material retailers in order to be distributed to more consumers.

The Company currently is in the process of launching innovative products for Automotive accessories business under the brand AEROKLAS and TJM this year. At the beginning of 2018, the Company had acquired the business of Flexiglass Challenge Pty. Ltd. (Flexiglass) which operate the Automotive accessory distributor business for pickup truck and SUV for both 2-wheel drive and 4-wheel drive in Australia with more than 100 distributors and dealers as well as its 5 own branches.

The mentioned investment would increase more distribution channels to AEROKLAS and TJM which opened an important business opportunity. The Company had a joint-plan to expand the business in Australia where there were customer base and complete services, providing an opportunity to expand its customer base, providing advantage to potential establishment of revenue increase and profitability in the future.

For the plastic packaging business under the brand EPP, the Company had re-strategized the business plan under the concept of "Capacities Driven" to enhance production process efficiency which helped elevate the level of gross margin. In addition, EPP also launched new products under the categories of both food packaging and plastic cup to expand the customer base. Regarding the industrial made to order market, the company acquired food safety related standard for manufacture to ensure our capabilities of production to deliver the product to the customer.

Dr. Pawat added that the operating results of 2017/ 2018 (April 17 – March 18) reported the total revenue from sale of 9,607 million Baht, increased from 9,280 million Baht from the same period of the previous year by 327 million Baht, or by 3.5%, and the net profit of 993 million Baht, decreased from 1,383 million Baht, of the same period of the previous year by 28%. "Despite the impact from the fluctuation of the foreign exchange, the thermal insulator business and Automotive accessories business of which 70% of revenue came from oversea, had continued to grow. On the other hand, the revenue from sale of plastic packaging slightly declined due to the slower than expected domestic consumption and the high competition within the plastic packaging industry. In addition, the volatility of the raw material prices and lower than expected utilization in the economy of scale in plastic and packaging business pressure the company Gross profit Margin throughout the year. However, the Company still maintained its gross profit margin had targeted", said Dr. Pawat.

Eastern Polymer Group Pcl., or EPG is a holding company with the main businesses consisting of heat/ cold insulator under the brand AEROFLEX, car accessories under the brand AEROKLAS, and food and beverage packaging under the brand EPP. The 3 businesses have success and growth with creative innovation, being the leader in local and oversea market, as well as having factories and distribution networks covering more than 100 countries worldwide.


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