ADB #Thunhoon – ADB unfolds its business plan for 2023, targeting net profit margin growth at 3-5%, aiming to control raw material costs. look at the downward trend As for sales, it is expected to be close to the previous year at 2.2 billion baht, expanding its export base.
Ms. Pornpiwan Niramoncherdchay, Managing Director of Applied DB Public Company Limited or ADB, a plastic compound business operator. And the adhesive and sealant product group revealed that in 2023, the total demand in the world market is still slowing down. The company expects that sales are unlikely to grow much. Or is expected to be around 2,200 million baht or may be done close to the year 2022 with sales of 2,155 million baht. But this year, the company will focus on growing the net profit margin (Net Profit Margin) to return to the level of 3-5% from controlling the cost of raw materials. In addition, the cost of raw materials has decreased from the previous year. which has quite a lot of price volatility coupled with the exchange rate that must be kept an eye on this year.
While in the past year 2022, the company’s profit margin has decreased due to the resin compound business being affected by the price of raw materials used in the production of products in terms of resin prices. And additives or plasticizers in the world market increased from the demand for chemical products in the world market increased. While the price of oil, which is the main factor in the price of plastic resin, has been rising steadily since the beginning of 2022.
for the past The company transferred the business of adhesive products. grout products and DIY products to ADB Sealant Co., Ltd., a new subsidiary and holding 100% of shares, in order to clearly separate the business and operations. Expanding exports to more foreign countries such as in Southern Africa and the Middle East. At present, the company has expanded its export market quite a lot. According to the demand or demand for the adhesive sealant business.
And previously, the company has signed an agreement to expand the PU adhesive market for packaging in the Thai market with PRAISE VICTOR INDUSTRIAL CO.,LTD (Taiwan), a manufacturer and distributor of PU products, especially in the flexible packaging group, which has a volume Its use has grown significantly in consumer products, such as foil sachets for confectionery. Coffee ziplock bags PVI will provide product and technical knowledge, and ADB will be responsible for marketing. and selling products in Thailand.
** Produce biodegradable bags
While the sale of plastic compounds or PVC in the first half of 2023 may slow down because the electrical cable project or project from the government is still waiting for clarity from the election. Therefore, expecting the wiring project or the sale of PVC wiring group will see clarity in the second half of 2023 or in the next 6 months.
As for the BIO business, the company has recently produced biodegradable bags. The company plans to increase the proportion of this type of product more. Because it is a business that can generate growth and return to a high level. However, it continues to develop products continuously. to support future use