ADB cuts prices to support margins, gear up for expanding overseas bases

ADB #Thunhoon – ADB’s female commander “Ponpiwan Niramoncherdchay” points out the direction of raw materials, reducing support for margins Accelerate the spread of foreign wings. South Africa base drilling after demand soars pushing the gross profit margin to 20%, revealing a plan to adjust the business strategy to pump sales Keep an eye on the state budget in the second half of 2023 to support compound sales Balance using boom wires

Ms. Pornpiwan Niramoncherdchay, managing director of Applied DB Public Company Limited or ADB, revealed that the direction of raw material costs has decreased. It is expected to benefit production costs in the second half of the year. And the profit margin (margin) is expected to be clearer than the first half of the year. As for sales, there may be a slowdown. Because products in the plastic compound group or PVC have to wait for budget from the government. Especially projects from the electric utility which requires compounds for the production of electrical cables It is expected that the second half of the year may not see investment budget from the government. Therefore, projects May be postponed to early 2024

** Going abroad to sell
At the same time, the company accelerated the export of glue. Grout to go abroad more According to demand (demand), use adhesive products, grout by choosing to penetrate countries that are not affected by Ukraine. for markets with adhesive products. and the grout is in high demand Especially in South Africa and the Middle East for gross profit margins in the adhesive and grout group at 18-20%.

However, in the second half of 2023, the company will closely monitor the exchange rate. Because currency problems may affect export sales. even sales volume or the volume tends to grow high But if compared to the current exchange rate, it may result in a decrease in overall sales.

while the overall direction of the results of the second half of 2023 should be better compared to the first half However, the company is considering reducing the sales target. Due to the overall picture of the first half of the year 2023, sales have decreased. In 2022, the company has sales of 2.16 billion baht, with the first 3 months of 2023, the company already has sales of 456.26 million baht.

** Proceed with business
Incidentally, the company transferred the business of adhesive products. grout products and DIY products to ADB Sealant Co., Ltd. which is a new subsidiary and holds 100% of shares in order to clearly separate its business and operations.

Ms. Pornpiwan Said earlier that the BIO business is currently in the process of testing its use. After the product is produced But the company is waiting for clarity from government laws. About the use of products or BIO products, however, continue to develop products continuously. to support future use

Overall, the original business was selling plastic compounds. Adhesive Products Business Grout products and BIO business will remain stable. At the same time, the company will continue to expand new businesses. And look at investments through joint ventures (Joint Venture) and holding shares in other companies. For new businesses, it is possible to invest in businesses related to existing businesses. or new businesses that are not in the same line