TWPC confident Q4/2021 performance soaring for high season! Tapioca starch grows strong, China demand overflows throughout the year

BackDec 09, 2021

Thai Wah Public Company Limited (TWPC) signaled outstanding growth in Q4/64 after entering high season, as tapioca starch exports are still the main protagonist because of high demand, cause to the high average selling price. "Ho Ren Hua" is confident that the 2021 performance will grow as targeted lead by exports, from both sales volume and higher average selling prices. Moreover, the year 2022 demand for tapioca starch is predicted to uprising, supporting for new records in the coming year.

Mr. Ho Ren Hua, CEO of Thai Wah Public Company Limited (TWPC), is confident that the outlook for the quarter 4/2021 will growth higher compared to previous quarters after entering high season. Because of the strong demand, especially tapioca starch products, vermicelli, and noodle products. The exports and sales volumes to China rose strongly, while the average selling price of tapioca starch also increased by 15% compared to the previous year.

Besides, food sales are still growing strongly across all channels, especially export, van sales and modern trade due to the benefit from the government's economic stimulus policy, launching of new product, including sales volume growth in Vietnam by 67% as a result of expanding distribution channels and increasing product variety. This ensures that the 2021 revenue will be growth continually from the previous year's revenue of 7,182 million baht. 

“The fourth quarter results showed a positive signal after entering high season of the business where the demand for tapioca starch continues strong. This is in line with the high demand for tapioca starch exports, result to the selling price increases. In addition, sales of food products increased in all channels. This will support the last quarter of this year's earnings to grow even more strongly” said Mr. Ho Ren Hua. 

Mr. Ho Ren Hua also said that in 2022, demand for tapioca starch products will continue to grow strongly from this year, including the demand for food products. Tapioca starch export prices continue to rise in a positive direction as demand for tapioca starch from leading markets such as China and the high average cost of cassava root. The average selling price of cassava roots remained at a high level due to the flooding situation in many areas, resulting in not as much cassava productivities as expected in the market. This should drive the operating results in 2022 to hit a new record and expect to see double-digit growth consistently in the next 3 years.