ECF provides 3-year roadmap expecting revenue from furniture business to reach 2,000 million baht with the focus on sustainable revenue and profit growth.

Tuesday 06 March 2018 15:40
ECF provides 3-year roadmap expecting revenue from furniture business to reach 2,000 million baht with the focus on sustainable revenue and profit growth. The revenue target of this year is expected to be not less than 1,600 million baht or increased by 10-12%, maintaining the net profit at 5-6%. The 2018 plan emphasizes production cost management to increase furniture business's profit, big investment in new warehouse and machinery development for more efficient production and also continuously profit realization from biomass and solar power plant business.

Mr. Arak Suksawad, Managing Director of East Cost Furnitech Pcl., (ECF), the manufacturer and distributor of furniture made of particle board and rubber wood in Thailand and overseas, disclosed the Company's 3-year business plan (2018-2020) targeting an average revenue growth no less than 10-12% with the total revenue expectation in 2020 to reach 2,000 million baht for furniture business with the profit proportion categorized by business group consisting of 35% from furniture business, 35% from energy business, and 30% from Planet Board, a subsidiary that the Company holds 57% of total shares of which was under the feasibility study for investment and preparation for business operation as a manufacturer and distributor of MDF board and particle board.

The overview of the business in this year, the Company targets the total revenue of no less than 1,600 million baht or increased by 10-12%, and maintain the net profit about 5-6% with the investment budget for the construction of new warehouse and improvement on manufacturing process in order to continuously reduce costs and expenses.

The Company has stipulated the main strategy for this year's business operation of furniture business by focusing on the development of efficient distribution channels as well as guidelines for profit building and cost reduction of the management.

It is expected that the business direction of this year will continue to grow supported by the growth of manufacturing and distributing of furniture business which has expanded its customers to cover the target group across the country. The brand "COSTA" is used for entering the market through furniture retail and wholesale shops in the provinces. The Company has also established the growth opportunity of the revenue from more orders following the branch expansion of modern trade customers. On the other hand, within the oversea markets, the Company has constantly received orders from customers in Japan and targeted to increase the revenue proportion from the AEC countries from 5% to 10%. In addition, the energy business will record the profit sharing from the renewable energy business of which in this year is expected to receive an outstanding record from the previous year.

The 7.5MW Biomass Power Plant in Narathiwas province has commenced its COD and recorded the profit sharing of 6.7 million baht since Q3/2017 and 8.8 million baht in Q4/2017. While the COD of the two 1MW Biomass Power Plants in Prae province are expected to commence in April 2018 and December 2018 respectively. The revenue from 220MW Minbu Power Plant in Myanmar is also recorded in this year with the recent completed import of 50MW solar cells which are under installation process. After the completion of phase 1 construction, phase 2 construction will be immediately performed. In addition, the Company also has several renewable energy power plant projects which are under possibility studies.

"The Company is confident that the total revenue in this year will be improved from the previous year in terms of the revenue from the main business of manufacturing and distributing of furniture which is expected to reach 10-12% growth. While other revenues from the subsidiaries and affiliated companies are gradually recorded in this year. These are the important factors to drive the Company's revenue with constant growth", said Mr. Arak.