UBE Excels Success with “UBEYOND” Strategy, Achieving Q1/2024 Net Profit of 107.6 Million THB

Unveiling the 2024 business plan, introducing the New Food Innovation Center, and committing to becoming a carbon-neutral organization by 2050

Ubon Bio Ethanol Public Company Limited (“UBE”), the largest well-integrated tapioca player of Thailand with its core products includes ethanol, tapioca starch and cassava flour, and other agricultural products revealed that the company has achieved success through the rigorous implementation of the UBEYOND strategy across all aspects. This includes addressing challenges in business operations with a focus on operational excellence, driving innovation, research and development, and prioritizing sustainable business practices. As a result, in Q1/2024, the company's total revenue reached 1,890.3 million THB, marking an increase of 391.1 million THB, or +26.1% (YoY). The net profit stood at 107.6 million THB. Moving forward, the company plans to continuously strengthen its business operations with the Food Innovation Center, a new initiative aimed at developing high-value food products. Additionally, the company has undergone a carbon footprint assessment as part of its goal to become a carbon-neutral organization by 2050. This aligns with the company's commitment to ESG principles, encompassing economic, social, and environmental responsibilities comprehensively.

Ms. Sureeyot Khowsurat, Chief Executive Officer of UBE stated that the profitability achieved in the first quarter of 2024 is considered a success resulting from rigorously and comprehensively following the strategic plan “UBEYOND*”, which encompassing all aspects of business operations, the strategy comprises of 1) Beyond the Challenges, through an efficient business operations plan, the company has overcome challenges and enhanced its current market share while advancing towards new business opportunities. Importantly, the company has elevated its Operational Excellence strategy by optimizing production processes from raw material management to internal operations efficiency, focusing on cost control, loss reduction, and digital transformation schemes, 2) Beyond through Innovation, by aligning with the innovation roadmap, fostering research and development efforts from internal research units and through collaborations with external partners, including both public and private sectors, and 3) Beyond Sustainability by conducting its business according to ESG principles, and ensures sustainability across all dimensions throughout the product lifecycle.

“Despite the economic slowdown and weather affected material costs due to fluctuations in crop yields in early 2024, the ability to return to profitability in the first quarter is evidence of our steadfast commitment to rigorous and effective execution of the strategic plans. In particular, the determination to elevate all internal production process to Operational Excellence is noteworthy. This enables us to successfully achieved our plans, and simultaneously, it enables us to maintain a stable supply of raw materials in our stock, sufficient to meet production demands throughout the year. In terms of the starch and flour business, there has been an increase in orders from customers, leading to a consistent increase in export volumes, additionally, we've capitalized on elevated selling prices of tapioca starch, coupled with yields from the 2024/25 harvest season, which will further bolster our production lines. Upcoming highlights of UBE Group, the company aims to advance towards leadership in food and energy products, focusing on innovation in biotechnology for food and energy sectors. Particularly in the starch and flour business, we've seen a significant shift with the establishment of the Food Innovation Center to develop high-value food products that meet customer demands and address global health food consumption trends. As for the ethanol business, we've begun exploring the possibility of producing Sustainable Aviation Fuel (SAF). In terms of the social angle, our internal focus is on empowering our employees in all aspects, while externally, we aim to create shared value with stakeholders, particularly farmers, which is the core of our business through the implementation of the “Northeast S2 Plus Innovation” project. Regarding environmental efforts, alongside our longstanding Zero Waste Policy, we initiated the Carbon Footprint of Organization (CFO) assessment this year, this assessment aims to evaluate the greenhouse gas emissions stemming from the company's operations and activities, it will enable us to establish strategies and emission reduction targets in the coming year, these endeavors are aligned with our goal of achieving carbon neutrality by 2050." Ms. Sureeyot said.

As of March 31, 2024, the company's financial performance for the first quarter reached 1,890.3 million baht, representing an increase of 391.1 million baht or +26.1% YOY, with net profit of 107.6 million baht, primarily driven by the strong performance of the ethanol business, we have achieved unprecedented record-high sales volumes of fuel-grade ethanol. In term of starch and flour business, there was an increase of +8.5% YOY, driven by the sales of organic starch and the benefit from an increase in the selling price of starch.

*Remark : UBEYOND = UBE + Beyond" originates from the fusion of ideas and strategies in UBE's business operations and its subsidiaries. It is dedicated to fostering sustainable, wide-ranging growth across all dimensions beyond current capabilities.