S. Khonkaen Foods Plc, a manufacturer and distributor of processed food products, intends to allocate an investment of 300 million baht in the coming year to strengthen its operations both domestically and internationally.
Jarunpoj Rujirasopon, Chief Executive of International Business, stated that the investment would mainly focus on automating production to address the upcoming increase in the daily minimum wage. Additionally, a portion of the funds will be allocated to the company’s expansion efforts in China.
The company is in discussions with Chinese state enterprises and traders to broaden the range of products it intends to offer in the coming year, including items like fermented pork.
S. Khonkaen expects sales of 5 million yuan in the first year of operations, with the China business model set to be finalized by late next year.
Mr. Jarunpoj mentioned that S. Khonkaen also intends to bring some of its well-received products, such as meatballs and Isan-style sausages, to the US market.
In Europe, the company intends to supply its current products to Asian food service chain stores and restaurant chains, in addition to the Asian groceries it has been providing for many years.
S. Khonkaen Foods is further extending its range of seafood fish ball products into nations where hot pot cuisine enjoys popularity. The target markets encompass China, Taiwan, South Korea, Japan, Singapore, and Malaysia.
Jaraspon Rujirasopon, Chief Executive of Domestic Business, mentioned that the outlook for the pork business in the first quarter of 2024 is anticipated to enhance, given that the issue of smuggling has been resolved.
Mr. Jaraspon stated that the company intends to expand its presence in the domestic market through five strategies, which include increasing the availability of its products at traditional trade and wet markets.
Starting next year, the company’s new distribution partner plans to support growth through traditional trade, introducing new products within a price range of 10-20 baht in this segment, he said.
Furthermore, Mr. Jaraspon stated that there will be increased efforts to boost sales in wet markets by leveraging the established customer base of Mahachai Foods Co, a subsidiary of S. Khonkaen.
He expressed the company’s aspiration to attain profitability in its quick-service restaurant (QSR) business in certain months of this year. The goal is to break even during the first quarter of 2024.
To fortify the S. Khonkaen brand, the company intends to explore new product categories, boost consumer engagement, and improve the efficiency and performance of its farm through product mix management.
Through the implementation of these strategies, the company anticipates achieving double-digit revenue growth in 2024.
S. Khonkaen Foods anticipates that revenue for this year will remain unchanged compared to 2022.
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%.
