TOA Paint (Thailand) Reports Stellar Second Quarter Performance in 2023

toa paint (thailand) revenue growth

Impressive Growth and Record-Breaking Profit

TOA Paint (Thailand) Public Company Limited, a trailblazer in paint and coating production and a comprehensive construction solutions provider in the country, has disclosed a remarkable second quarter performance for 2023. The company saw total revenue grow by 5% to 5,508 million baht and a substantial 103% increase in quarterly net profit, reaching 741 million baht. This exceptional performance is mainly attributed to the resurgence of tourism and reduced raw material prices.

Boosted by Tourism and Economic Recovery

Mr. Jatuphat Tangkaravakoon, CEO of TOA Paint (Thailand), shed light on the company’s second quarter results, stating, “During Q2 2023, we recorded a total revenue of 5,508 million baht, a 5% increase compared to the same period last year. The growth is mainly driven by the country’s economic upturn and domestic tourism, which bolstered sales in Bangkok and nearby tourist destinations. As a result, the total income for the first half of the year reached a notable 11,212 million baht, reflecting a solid 10% growth.”

Record-High Quarterly Profit

The company’s extraordinary performance also led to a significant increase in net profit. The second quarter of 2023 generated over 741 million baht, a striking 103% growth compared to the same period in the previous year. This accomplishment represents the company’s highest quarterly profit since its inception. Moreover, the net profit for the first half of the year reached an impressive 1,373 million baht, marking a 77% increase from the same period. The boost is mainly attributed to the decline in raw material prices and the company’s effective cost management strategies.

Challenges and Opportunities in the Regional Market

Despite the local success, the overall performance in other countries was not as strong, primarily due to inflation and rising interest rates affecting consumer purchasing power and the broader economy. For instance, the real estate sector in Vietnam faced hurdles due to a debt crisis, leading to government intervention to curb home price speculation. Consequently, the real estate business experienced a slowdown in the first half of the year. However, a recovery in the Vietnamese real estate sector is expected in the fourth quarter.

In the domestic market, challenges still persist, including political instability and a deceleration in new real estate project launches during the second half of the year. Nevertheless, the outlook for the company’s sales growth remains positive. Demand for paints and construction chemical products for renovations and maintenance stays high, as does the market for ‘TOA Gypsum board,’ where the company holds a leading market share.

Expansion into Frame System Equipment Market

Capitalizing on the success of penetrating the gypsum board market, TOA Paint (Thailand) has devised a strategy to further expand by entering the frame system equipment market, which complements gypsum board usage and carries approximately the same market value. This expansion is anticipated to strengthen the company’s sales this year, keeping in line with the trend of continuous sales growth. Concurrently, the company’s profitability continues to showcase remarkable recovery, positioning it for another prosperous year.

Interim Dividend Payment Approval

Mr. Jatuphat added, “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 substantial 32% increase compared to the same period last year. This dividend is sourced from net profit subject to a 20% corporate income tax.”

List of Key Points:

  • TOA Paint (Thailand) reports impressive second quarter performance in 2023.
  • Total revenue grew by 5% to 5,508 million baht.
  • Quarterly net profit surged by 103% to 741 million baht.
  • Growth attributed to tourism recovery and reduced raw material prices.
  • Challenges persist in the regional market, but outlook remains optimistic.
  • Expansion into frame system equipment market planned.
  • Interim dividend payment approved at a rate of 0.33 baht per share.