ADB Business Restructuring Spreading the wings to export glue

ADB #Thunhoon – ADB continues to restructure its business Separate adhesive products, clear sealants, high growth belief. Aiming to increase exports after demand overflows On the management side, “Pornpiwan Niramoncherdchay” prepares to make the board for the year 2023 plan by the end of this November. Flag to pump revenues of more than 2 billion baht.

Ms. Pornpiwan Niramoncherdchay, Managing Director of Applied DB Public Company Limited or ADB, revealed that the company restructured its business by transferring its adhesive products business. grout products and DIY products to the subsidiary, which ADB Establishing a new subsidiary and holding 100% of shares expected to be completed within the first quarter of 2023 after the business transfer is complete. will continue to operate the business of manufacturing and distributing plastic compounds as before Such restructuring will enable the Company to implement its strategies more efficiently.

** Restructuring

Adhesive products business grout products and DIY products The company wants to separate the business clearly. for future growth and have the opportunity to expand the business with partners Like plastic compound mechanical which the company has a Japanese partner to do business with It is also an opportunity to drive the adhesive products business. grout products and DIY products to be listed on the stock exchange in the future

The adhesive products business grout products and DIY products have high growth potential At present, the company has expanded the export market quite a lot. According to the demand or demand for the adhesive and sealant business, especially in South Africa, the Middle East, the market is open. As for the proportion of sales of such products, 50-60% are sold abroad and 40% are sold domestically.

// go ahead and save margin

The company is preparing to meet the Board of Directors (Board) to approve the 2023 growth plan by the end of November. Initially, total revenue is expected to exceed 2 billion baht from the sale of plastic compounds and sealant products. The company will maintain its net profit margin (Net Profit Margin) at 4-5% and gross profit margin (Gross Profit Margin). ) to be at the level of 15% 1 by managing the cost of raw materials And the production is stable because 80-90% the company has the cost of raw materials. If the cost is at the current level It is expected to make the picture of the company’s production costs look good. Compared to the beginning of last year.

As for the results of the 3rd quarter of 2022, the company had total revenue from sales of 539.38 million baht, compared to 384.63 million baht in the same period last year, an increase of 154.75 million baht, an increase of 40.23%. The net profit was 10.36 million baht compared to Same period last year at 11.27 million baht, a decrease of 0.91 million baht or a decrease of 8.07%.

“The 3Q/22 results are considered satisfactory as 1Q22 we were negative and returned to improve in 2Q22. In the 3Q22, our profits have increased to 10 million baht, a sign of growth has started to recover. Clearly, in the 4th quarter of 2022, the business direction should be better in line with lower volatility costs,” said Ms. Pornpiwan.