TOA Paint (Thailand) Public Company Limited, a pioneering force in paint and coating production and an integrated construction solutions provider in Thailand, has unveiled an impressive second quarter performance for 2023. With total revenue soaring by 5% to 5,508 million baht and quarterly net profit witnessing a phenomenal 103% surge to reach 741 million baht, the company has achieved a new zenith. The success story is attributed to factors such as tourism recovery and a reduction in raw material prices.
Mr. Jatuphat Tangkaravakoon, CEO of TOA Paint (Thailand), elaborated on the results, stating, “In the second quarter of 2023, the company recorded a total revenue of 5,508 million baht, reflecting a 5% increase compared to the corresponding period last year. This growth can be attributed to the nation's economic resurgence and domestic tourism, which in turn boosted sales in Bangkok and adjacent tourist destinations. Consequently, the total income for the first half of the year reached an impressive 11,212 million baht, indicating a remarkable 10% growth.”
The astounding performance also translated into net profit, with the second quarter of 2023 yielding over 741 million baht—a staggering 103% growth compared to the same period in the previous year. This achievement marks the company's highest quarterly profit since its inception. Furthermore, net profit for the first half of the year reached a noteworthy 1,373 million baht, signifying an impressive 77% increase from the same period. This boost can be attributed to lower raw material prices and the company's effective cost management strategies.
However, the overall performance in other countries lagged compared to the previous year, largely due to inflation and escalating interest rates impacting consumer purchasing power and the overall economy. The real estate sector in Vietnam faced challenges due to a debt crisis, prompting government intervention to curb home price speculation. As a result, the real estate business experienced sluggishness in the first half of the year. Nonetheless, recovery in the Vietnamese real estate sector is anticipated in the fourth quarter.
In the domestic arena, challenges remain, including political instability and a slowdown in the launch of new real estate projects in the second half of this year. However, the outlook for the company's sales growth remains optimistic. Notably, demand for paints and construction chemical products for renovations and maintenance remains high, as does the market for 'TOA Gypsum board,' in which the company holds a leading market share.
Building on the success of penetrating the gypsum board market, the company has devised a strategy to further expand by entering the frame system equipment market, which is intertwined with gypsum board usage and carries around the same market value. This expansion is projected to bolster the company's sales this year, aligning with the trend of continuous sales growth. Simultaneously, the company's profitability continues to demonstrate outstanding recovery, positioning it for yet another promising year.
"In addition, the Board of Directors Meeting on August 15 approved the interim dividend payment for the first half of 2023 at a rate of 0.33 baht per share, amounting to 670 million baht—a remarkable 32% increase compared to the same period last year. This dividend is sourced from net profit subject to a 20% corporate income tax," affirmed Mr. Jatuphat.
