Dr. Chalio Witoorakorn, Vice President of Eastern Polymer Group Public Company Limited (EPG), a leading global manufacturer and distributor of polymer and plastic products, announced that the company's performance for the first six months of the fiscal year 68/69 (April - September 2023) recorded sales of 6.771 billion baht, a decrease from 7.182 billion baht in the same period last year, representing a 6% decline. The gross profit margin was 33.2%, in line with targets, with a net profit of 587 million baht, an increase of 50% from the previous year due to a reduction in expected credit loss (ECL) provisions. The business outlook for the second half of the year shows a continuous recovery trend, with expectations that the fiscal year 68/69 (April 2023 - March 2024) will maintain sales at 13.8 billion baht and a gross profit margin of 30-33%, in line with set goals through disciplined cost control, operational efficiency improvements, and careful investment allocation.

The thermal insulation business under the Aeroflex brand aims for sales growth of no less than 5% due to expansion in both domestic and international markets. In the United States, there is a growing demand for premium-grade thermal insulation and products for the Ultra Low Temperature Insulation and Air Ducting system industries. Key project customers in the U.S. include the Semiconductor, Data Center, and Electric Vehicle manufacturing sectors.

Aeroflex benefits from the reshoring trend and U.S. government infrastructure investments. Aeroflex USA Inc. has purchased land and buildings adjacent to the existing factory to prepare for increased production capacity to meet anticipated demand next year, while also mitigating risks associated with future import issues in the U.S. In Japan, besides the demand for premium-grade insulation, there is also significant growth potential for Air Ducting system products, while domestic demand for thermal insulation remains steady.

The automotive parts and accessories business under the Aeroklas brand expects sales to decline by about 5%, reflecting the overall slowdown in the automotive industry due to reduced production volumes. However, Aeroklas continues to pursue growth through expertise in manufacturing lightweight, durable polymer and plastic automotive parts that can completely replace metal materials, resulting in lighter pickup trucks that reduce energy consumption and carbon dioxide emissions. Aeroklas is also developing innovations to support both combustion engine vehicles and electric vehicles (EVs), while strictly controlling production costs and enhancing raw material sourcing efficiency to strengthen long-term competitiveness.

For the Australian business under the Aeroklas Asia Pacific Group (AAPG), a turnaround plan is being implemented through effective cost management and improved sales channels. Meanwhile, 4 Way Suspension Products Pty. Ltd. under the Tough Dog brand is experiencing good growth and will continue to expand in the suspension market both in Australia and globally.

In South Africa, ATD Alliance (Pty) Ltd has effectively controlled costs and is in the process of restructuring operations to achieve long-term profitability. Aeroklas sees growth opportunities in South Africa as the automotive industry for pickup trucks is expanding, catering to both the African market and exports to Europe, as evidenced by new factory investments from automotive manufacturers.

The plastic packaging business under the EPP brand aims for 5% sales growth, supported by lower raw material costs, improved production efficiency, and effective cost control. EPP continues to leverage its strengths in technology and innovation in production and various standards such as ISO, GMP, HACCP, BRC, and FSC to expand its customer base, particularly in the industrial sector.

For joint venture businesses in thermal insulation and automotive parts and accessories in Thailand, India, and China, they continue to face pressure from the slowing economic conditions.

Additionally, at the board meeting of Eastern Polymer Group Public Company Limited on November 12, 2023, a resolution was passed to approve an interim dividend payment for the performance ending September 30, 2023, at a rate of 0.07 baht (seven satang) per share, totaling 196 million baht. The record date for shareholders entitled to receive the dividend is set for November 28, 2023, with the payment scheduled for December 9, 2023.

“The company believes that the strength in innovation and strategic adaptability under the 'USE' policy (U: Utilization of resources efficiently, S: Save costs, and E: Efficiency in operations) combined with maintaining liquidity, managing cash flow, and disciplined cost control will be key drivers for stable growth across all three business segments in the fiscal year 68/69, despite ongoing macroeconomic challenges,” Dr. Chalio stated.