ADB #Thunhoon – ADB hints at plans to expand production capacity of medical resins, as well as increase BIO and Health Care businesses, hoping to increase sales. Ready to prepare a forum to discuss business plans in 2023, flagging revenue growth of 20% and maintaining net profit margins at 4-5%
Mr. Jirawat Akranupornpong Chief Financial Officer Applied DB Public Company Limited or ADB revealed that the company prepares to meet the Board of Directors (Board) to approve the growth plan for 2023 by the end of November. Initially, total revenue is expected to grow by 10-15% from sales of plastic compounds and adhesive and sealant products. Including the company will maintain the net profit margin (Net Profit Margin) at 4-5% and gross profit margin (Gross Profit Margin) at 15% by managing raw material costs. and stable production because 80-90% of the company’s costs are from raw materials. If costs are at current levels Expected to make the picture of the production cost of the company look good. compared to the beginning of last year.
** Business restructuring
Recently, the company has restructured its business by transferring its adhesive products business. grout products and DIY products to a subsidiary in which ADB has established a new subsidiary and holds 100% of shares, and is expected to be completed by the first quarter of 2023 after the transfer of business has been completed. Will continue to operate the business of manufacturing and selling plastic compound as before. The restructuring will allow the company to implement its strategy more efficiently.
In addition, the company will increase the production capacity of 2 production lines for Medical Grade PVC Compound, which generates continuous sales growth. by installing all of them By starting production from the 4th quarter of 2022 and currently starting to have sales gradually coming in. In addition, in 2023 there will be plans to expand additional production capacity as well. As for the BIO and Health Care businesses, the Company plans to increase the proportion of these types of products. Because it is a business that can generate growth and return to a high level.
** Expand the market
Manufacturer and distributor of plastic compound products industrial glue and grout products The company also focuses on the export market. will expand more markets At present, the company has expanded its export market quite a lot. According to the demand or the demand for adhesive and grout products, especially in South Africa, the Middle East, the market is open. For the proportion of sales of such products in the country 40% and abroad 50-60%.