Moving forward to create broader sustainable growth to lead in innovating energy and food products derived from agriculture.
Ubon Bio Ethanol Public Company Limited or UBE, a Thailand’s leading manufacturer and distributor of processed cassava products, including ethanol products, tapioca Starch and cassava flour, other organic products, announced its operating performance for 3rd quarter of 2023 with revenue of 1,434.7 million baht and profit of 20.7 million baht due to the gradual easing of the raw materials situation and preparations for the tourism season, reflecting an increase in sales in the ethanol business. As for the cassava starch business, the selling price is higher, the company will continue to conduct research and development by bringing innovative to produce energy and food products from high-quality agricultural raw materials, along with conducting business in accordance with the principles of good corporate governance to create broader, sustainable growth in every dimension.
Ms. Sureeyot Khowsurat, Chief Executive Officer and Managing Director of UBE revealed that “Operating profit in the 3rd quarter of 2023 rebounded from the previous quarter as the raw material situation began to improve, while also benefiting from the start of the tourist season. As a result, ethanol sales volumes increased by approximately 22% compared to the previous quarter. Meanwhile, the tapioca starch business recorded a significant increase in sales due to an increase in selling price of approximately 8% as a result of high raw material costs. Nevertheless, UBE's total revenue has decreased compared to the same period last year, which is an important effect of the raw material shortage. In addition, customers still have high product inventories, which have been hoarded since the COVID situation, this led to a decrease in sales volume of tapioca starch. Regarding the domestic marketing of cassava flour products under the Tasuko brand of Ubon Sunflower Co. Ltd., the response has been good and sales volumes, particularly of cassava flour batter mix, has increased as we have expanded our distribution channels. In terms of other performance results this quarter, UBE continued to pursue broader growth in line with the "UBEYOND" strategic plan, particularly in the area of "Beyond Sustainability", i.e. sustainability in business operations, we remain committed to moving forward in accordance with the principles of good corporate governance with ESG as our corporate culture. Our goal is to pursue a sustainable raw material management strategy in the development of cassava with modern farming systems through collaboration with business partners, government agencies and the private sector. In addition, knowledge development through training and demonstration plots for farmers in an integrated manner is still an important thing to continue. Furthermore, we also have the UBE CARE project we pay attention... we take, to cover the social, environmental and good corporate governance, these led us to achieve an "excellent" CG rating, or 5 stars, and were listed in SET ESG Ratings at "A Level". We aim to be a leading, innovative company that provides energy and food products made from agricultural raw materials. UBE continues to expand its research and development, as recently the testing capacity of our ethanol product laboratory has been certified and we have successfully obtained ISO/IEC 17025:2017 certification, which will allow us to provide additional service of product testing services to external customers."
UBE's operating results for the 3rd quarter of 2023, ended September 30, 2023 showed total revenue of 1,434.7 million baht, an increase of 14.5% from the previous quarter (QoQ), but a decrease of 19.2% from the same period last year (YoY), with net profit of 20.7 million baht. The main reason was that the raw material shortage situation has started to ease and the tapioca starch factory has returned to normal operation. In addition, tapioca starch can be sold at a higher price. As for the ethanol business, sales volume increased due to the start of the tourist season.
"In terms of business direction in the 4th quarter of 2023, the cassava raw material situation is starting to improve, but we still need to keep an eye on the impact of the El Niño phenomenon, as a result, cassava prices are expected to remain high. As for the ethanol business, there is still a trend of high raw material prices, including molasses and cassava, which may affect the selling price of ethanol. However, with the advantage of the start of the tourist season, demand for ethanol is expected to remain at the same level as in the previous quarter. As for the tapioca starch business, selling prices remain high due to raw material prices, and it is expected that orders will gradually increase in this quarter in preparation for the high season when consumption will increase and the initial inventory that customers had started to reduce. However, UBE continues to work with government agencies to implement various projects to strengthen upstream farmers, which will lead to sustainable raw materials, coupled with continuous research and development to bring innovation to develop high-value energy and food products. Currently, studies are underway to establish an innovation center, research and development including seeking cooperation with partners and new business opportunities according to the strategic plan to create broader growth based on good corporate governance principles with ESG as the basis and adherence to anti-corruption policies as the company is a member of the Private Sector Collective Action against Corruption (CAC) to maintain standards of being a sustainable organization covering all dimensions."Ms. Sureeyot concluded.