Oishi counts on new drinks to lift revenue

KRISSANA PARNSOONTHORN

Oishi Group Plc is confident that it can achieve its 2007 revenue target of about five billion baht due mainly to increased production capacity and a host of new products.

Managing director Tan Passakornnatee said Oishi performed better in the first quarter than in the same period of last year due to the use of flashier packaging.During the first quarter, Oishi's green tea business grew 30%, while the food business managed to grow normally after falling 30% during the first two weeks of January due reduced demand following the Bangkok bombings.

"This makes us confident that we will be able to achieve the revenue target of 4.5-5 billion baht this year, up 14% to 26% from 3.95 billion baht last year," he said.

Overall, Oishi sales have increased since the company has switched to using modern packaging products, especially Tetra-pak. As well, it has aggressively promoted its new products on television.

"This year, we set aside 400 million baht as an investment budget, of which 280 million baht will be used on advertising and public relations activities and 120 million baht for expanding new food outlets," Mr Tan said.

He said Oishi planned to introduce three new products. The first one, Seki juice, was launched in the first quarter, while the other two will be introduced in the second half.

"Although the local economy is not good, we will try to move forward by introducing new products and continuing TV ads, which will probably hit consumer minds and encourage more consumption in the near future," he said, hoping that the new Seki juice would sell well in the summer season.

Paisal Aowsathaporn, director for food operations, said the restaurant business would generate 1.6 billion baht in revenue this year. Oishi plans to open 10 new restaurants. The first will open on Saturday under the Shabushi label at Fashion Island.

"In the normal situation, we will open ten new food outlets each year. But last year we could open only eight due to a lack of good locations," he said.

Mr Paisal said the overall picture for the food and restaurant business would continue to be prosperous as middle-income people were more likely to dine out. This year, the business is expected to grow up to 10%. It posted a 2006 profit of 189.11 million baht on revenues of 3.96 billion.

Shares of Oishi (OISHI) were last traded on Thursday at 17 baht.

Bangkok Post

Last Updated : Tuesday April 10, 2007