Thai Wah Public Company Limited (TWPC) shows a strong performance in Q4/20, turn a profit and improving its FY2020 EBITDA and operating cash flow. It recorded FY2020 7,090 million baht revenues, decreased 3% from the same period last year. Although the Company faced the COVID-19 crisis, the core business of the company is strong with double-digit volume growth. Hence, the Board of Directors approved to pay dividends for the year 2020 at 0.134 baht/share. "Ho Ren Hua," Chief Executive Officer, stated that revenue growth in 2021 is expected to increase more than 10%, focusing on developing new products and adding value to agricultural products, such as bioplastic and new Specialty and HVA products.
Mr. Ho Ren Hua, Chief Executive Officer of Thai Wah Plc or TWPC, disclosed that the 2020 performance that the Company recorded its net profit at 38 million baht decreased 44% compared to the same period last year. Operating Cash Flow increased more than 19% which is due to strong discipline of the company. Total revenue was 7,090 million baht, representing a decrease of 3% from 7,323 million baht in the year before. Although the revenue from the tapioca starch business declined, revenue from the food business grew 8% in contrast to the economy, especially in the export channel and the Vietnamese market, which grew 95% and 154%, respectively, as this is an essential product for consumers’ daily living amid the COVID-19 situation. Moreover, the Company maintained a gross profit margin at 16%, similarly to last year, although there were additional expenses according to the COVID-19 pandemic.
Moreover, the Company’s Board of Directors passed a resolution on 24 February 2021 to approve the dividend payment to shareholders on the 2020 performance at 0.134 baht/share or a total of 118 million baht. The closing date of the shareholder register for the dividend is on 6 May 2021, and the payment is due on 21 May 2021.
“In 2021, the Company sets a growth target of sales volume of more than 10%, based on the growth of cassava production, response to the much higher product demand in the global market, the strong recovery of tapioca starch exports in 4Q/2020, especially China, as orders started to return massively with the long-term contract until early 2021. Besides, there are also other competitive opportunities, such as tariff exemptions for imported tapioca from Thailand, the growing demand for raw materials for the clean energy fuel ethanol production, and the significant increase of corn starch price. As a result, average selling prices in the domestic and export markets rose compared to the same period last year.
Moreover, the food business is expected to continue to grow from domestic consumption recovery, according to the overall economy. Including continuing launching new products that offered health and well-being and meet customer needs, such as Thai Wah has recently launched a new product or Instant Vermicelli, Double Dragon Ready brand, a new choice for health lovers, who love street food, delicious, convenient, and ready to eat in 3 minutes. This product has received excellent feedback from customers.” Mr. Ho Ren Hua said
The CEO also states that in 2021, the Company implements its strategy to focus more on improving the resilience and continuity of our supply chain, integrating our technology platforms to drive speed and efficiency further, and expanding our portfolio towards innovative products and services to serve the rising demand to continuously drive profit margin, such as bioplastic products, which is a plastic prepared from crops and can be biodegradable naturally without any harm to the environment.
Thai Wah is a key leader in Sustainability and awarded for the second year running to be part of the SET Sustainability Index.