Taokaenoi’s new plant to spur growth

SET-listed Taokaenoi Food & Marketing Plc (TKN), the maker of Tao Kae Noi seaweed snacks, is confident of 15% revenue growth this year after opening a new factory at Rojana Industrial Park, Ayutthaya in March.

The new factory, whose capacity is now 1,500-2,000 tonnes a year, will help the company export more snacks starting this year.

Annual capacity at the new plant will rise to 4,000 tonnes in the third quarter. Once the company gets more export orders, the plant will run at full capacity of 6,000 tonnes a year.

The first factory in Nonthaburi is running at full capacity of 6,000 tonnes a year.

Chief executive Itthipat Peeradechapan said higher exports and new products will drive revenue by 15% as planned this year from 4.7 billion baht in 2016.

Export sales currently represent 59% of revenue, with 41% from domestic sales.

“We get more export orders from China, Vietnam and the US,” Mr Itthipat said. “China has very high demand for seaweed snacks.”

For the first quarter of 2017, Taokaenoi posted a net profit of 171 million baht on revenue totalling 1.12 billion baht, up 10% year-on-year.

Taokaenoi hired Got7, a South Korean boy band, as brand presenters in February. The company will also have a joint production with Nadao Bangkok to make a short film to attract Thai teenagers.

The Thai market for seaweed snacks has seen intensifying competition. Singha Corporation, a rival of Taokaenoi, has hired a different South Korean boy band, NCT, to promote Masita seaweed snacks.

Taokaenoi will also promote online sales to reach younger customers.

TKN shares closed yesterday on the Stock Exchange of Thailand at 20 baht, down 80 satang, in heavy trade worth 1.24 billion baht.