Sappe PCL (SAPPE) announced its financial performance in the second quarter of 2021 with a revenue of 960.5 million baht, a growth of 31.9%, while the net profit hit 125.5 million baht, an increase of 53.3% from the same period last year. The company is ready to adjust its business plan to be more proactive, launch new health products and create momentum in the food and beverage market. SAPPE also prepares for a return of the purchasing power boosted by a foreign market recovery, plus a positive impact from the weakening baht. The company is confident that the total revenue this year will reach the target of 10-15% growth.
Sappe Chief Executive Officer, Ms. Piyajit Ruckariyapong, said the second-quarter performance was a strong growth with a revenue of 960.5 million baht, up by 31.9%, compared to the past year at 728.2 million baht. It is a robust growth amid the COVID-19 impact while the foreign market has bounced back to strongly grow by 52%, thanks to the significant economic recovery in key regions. She added the recovery in foreign markets is reflected by an increase in the purchasing power among consumers after being vaccinated. Middle East, Europe and the United States are among the regions with outstanding growths. Despite the rising transportation cost, the company will manage the issue carefully.
Regarding the domestic market, the company, this quarter, signed a Memorandum of Agreement to promote hemp cultivation with Thai Hemp Wellness Co., Ltd. to respond to the health-loving trend among consumers. The functional drinks from SAPPE include Sappe Beauti Drink Green Relaxing Calm, Preaw coffee’s new formula collagen Type II, and Maxtive coffee with Tibetan Cordyceps and vitamin B complex. For snack products, the company collaborated with Workpoint Entertainment to produce Kru Pensri chewing candy. The partnership could help create more momentum in the food and beverage market.
The net profit of 125.2 million baht in the second quarter, up by 53.3% from 81.6 million baht in the same period last year, was a result of the rising sale volume and efficient cost management. The weak baht also helped the company get more revenue and profit.
The Sappe CEO said the company’s performance is expected to continue growing in the second half of this year, due to a global market expansion stemming from the brand, strong distribution and economic recovery in several countries. For the domestic market, the company plans to launch new products in order to maintain its leading position in the functional drink products.
In addition, SAPPE will also spice up the food and beverage market by cooperating with its business partners to revive the market in the second half of the year. It is projected that SAPPE’s revenue this year will reach the target of growing by 10-15%.
