Thai Wah, Southeast Asia’s leading agri-food platform and largest tapioca starch producer, demonstrated outstanding growth in Q1 operational results with a 30% increase in net profit despite the economic slowdown. The company plans to accelerate its export of agricultural and food products to the international market, focusing on innovative products, and is confident that company revenues will continue growing at a double-digit rate in 2022.
Amid rising global tensions and a slowing economic environment, Thai Wah Public Company Ltd. (TWPC) delivered record profit in Q1 of 2022 with a 30% increase in net profit and 15% increase in global sales. The strong sales growth came from all segments of its business with significant performance in the core markets – Thailand, Vietnam, China and USA – which resulted in a total of 2,465 million baht in sales. Out of this figure, the revenue from the tapioca starch business stood at 1,321 million baht, accounting for 54 percent. The value-added revenue from the tapioca starch business was 664 million baht or 27 percent, and the food business was 480 million baht or 19 percent. The share of food domestic revenue was 86 percent and international revenue was 14 percent. As Southeast Asia’s leading Agri-Food platform, TWPC operates in five countries across 15 operations with a full product portfolio range in consumer food, starch and food ingredients, vermicelli and noodles as well as its new tapioca-bioplastic platform, ROSECO.
Mr. Ho Ren Hua, Chief Executive Officer, Thai Wah Public Company Limited (TWPC), said, “Designing and developing a very strong globally balanced portfolio has been a key cornerstone to our overall strategy since Covid started in March 2020. As one of the region’s few vertically integrated agri-food players from Farm to Shelf, we have been spending the last three years focusing on strengthening our entire value chain capabilities, localising all our supply chain and bringing our sales capabilities into global markets.”
A new series of ready-to-eat instant vermicelli products is now available across Thailand, and Song Long, its core flagship brand in Vietnam, is one of the fastest growing consumer vermicelli brands in the region. For its B2B Starch and Ingredients Business – the Company continues its acceleration into high-value products, including modified starches and organic tapioca which are now sourced from across the Southeast Asian region.
In Q1 2022, Thai Wah witnessed continued double-digit revenue and profit growth across all segments and delivered its best first quarter ever in 2022. This represents the accelerated momentum of the company’s transformation and endeavor to be a global player in starch ingredients market from Southeast Asia. Later this year, it will be opening partnership offices in San Francisco, New York, and London in the areas of food-tech, agri-tech, and bio-tech.
“Agriculture and Food is inherently a global business, and with the looming challenges in global food security and climate change, we have a big responsibility to serve our global customers faster and better from this part of the world. Over the last 6 months – our traction in global sales and marketing has accelerated dramatically, and we now serve some of the world’s leading brands and Fortune 500 food companies. We are uniquely and completely plant based from Farm to Shelf, and that resonates well with our global customers across food, food and starch ingredients and sustainable packing and new biomaterials,” Mr. Ho added.
In addition, the company’s new platform, Thai Wah Ventures, will be soon closing three new Venture Capital investments in USA, Indonesia, and Australia as part of its strategic push to invest in new high growth and high-technology areas in agricultural food, biotechnology and digital supply chain.