KCG Corporation Public Company Limited (KCG) reported a Q3 2023 net profit of 55.3 million baht, up 10.5%, with sales reaching 1,681.0 million baht, a 6.9% increase year-on-year. These results boosted the Company’s performance over the first nine months of 2023, with sales totaling 4,949.9 million baht, up 17.1%, and net profit climbing 29.3% to 164.5 million baht. Growth was seen across all product groups and sales channels. Looking ahead to Q4, KCG plans to capitalize on the festive season and a booming tourism sector, which is driving strong demand across the hotel, restaurant, and consumer markets—especially for cheese, butter, bakery, and biscuit products. KCG is confident in achieving its 2023 growth targets.

Dr. Watit Tamavimok, Chief Executive Officer and Managing Director of KCG Corporation Public Company Limited (KCG) — a leading manufacturer, distributor, and importer of butter, cheese, and consumer products from around the world—reported that KCG delivered a strong performance in Q3 2023 (July–September). KCG achieved sales of 1,681.0 million baht, up 6.9%, and a net profit of 55.3 million baht, an increase of 10.5% compared to the same period last year. Growth was seen across all product categories in the Western food and bakery segment, as well as across all distribution channels—including B2B, B2C, and exports. This momentum was driven by increasing consumer demand for Western food products, fueled by lifestyle shifts among health- and nutrition-conscious consumers. The positive response to new product launches in the first half of the year also played a key role in driving third-quarter results.

In Q3 2023, KCG’s gross profit margin rose to 29.9%, up 3.1% from the same period last year, supported by a steady decline in raw material and product costs since the beginning of the year, as well as more efficient production management. These improvements contributed to strong operating results for the first nine months of 2023 (January–September), with net profit reaching 164.5 million baht, a 29.3% increase year-on-year, and sales revenue totaling 4,949.9 million baht, up 17.1%. Growth was consistent across all product categories—dairy products generated 2,951.5 million baht, up 17.2%; food and bakery ingredients brought in 1,482.6 million baht, a 16.9% increase; and biscuits sales totaled 515.8 million baht, rising 17.4% compared to the same period last year. This performance reinforces KCG’s position as a market leader, manufacturer and distributor of premium butter, cheese, and ready-to-eat products across the globe.

In addition, the Company achieved strong results across all distribution channels during the first nine months of 2023. Revenue from the business-to-business (B2B) channel reached 2,088.0 million baht, up 16.2%, while the business-to-consumer (B2C) channel generated 2,638.7 million baht, an increase of 17.9%. Export revenue also rose, totaling 223.3 million baht, a 16.1% gain compared to the same period last year. Supporting this growth was the continued contribution from Indoguna (Thailand) Co., Ltd. (IDG), a subsidiary specializing in the import and distribution of frozen food products such as lobster meat and cold cuts. This has helped expand KCG’s product portfolio and further drive total revenue growth.

Dr. Watit stated that KCG’s business plan for the fourth quarter includes ramping up production across key categories—butter and cheese, food and bakery ingredients and biscuits—to meet rising demand during the New Year festive season. Increased spending from the tourism sector, hotels, and restaurants, along with a growing trend in catering (HORECA), has driven up demand for these products, particularly in the butter, cheese, and processed dairy, as well as food and bakery ingredients segments. Demand for biscuits has also seen a notable rise, further supporting growth in the food and bakery industries. With raw material prices continuing to trend downward, KCG remains confident that its performance for 2023 will meet its growth targets.

In October, KCG expanded its production capacity for individually wrapped processed cheese slices (IWS) from 2,106 tons to 4,212 tons per year, a move expected to support growth over the next 3 to 5 years. IWS continues to experience strong market demand, enabling the Company to introduce a variety of new consumption patterns that will support sustained sales growth. Meanwhile, progress continues on the KCG Logistics Park project. A total of six buildings are under construction, including two frozen storage buildings, three ambient storage buildings, and one dedicated to storing flour and sugar. The first ambient storage building is expected to be completed and fully operational in Q1 2024, with the entire KCG Logistics Park scheduled for completion by Q2 2024. Once fully operational, the facility will enhance product management efficiency and significantly reduce the reliance on external warehouse space.