CEO's Viewpoint: Facilities Management focuses on creating added value for products. Creating sustainable growth for operating results

ll Food Moment Public Company Limited or FM will soon become a newly listed company. In the food business group by preparing to sell shares, IPO shares, to raise funds on the Stock Exchange of Thailand (SET) in the third quarter of 2024, the goal is to increase competitiveness. And create strong and sustainable growth in the integrated business of chicken production and distribution. Distinguished by innovation and modern technology. There are international standards.

FM, under the management of Mr. Natthaphon Dusadenod, CEO, is preparing to offer an additional 376.96 million ordinary shares to the public for the first time (IPO), with a nominal value of 2 baht per share, on the SET Stock Exchange, Agro-Food Industries Group, Food and Beverage Business Category, with OptAsia Capital Company Limited as financial advisor. The aim is to use the proceeds of this stock offering, approximately 1,150-1,550 million baht, to be used for 1. Improving the existing production line and expanding the production capacity of the chicken slaughterhouse and slaughterhouse, by up to 300-400 million baht. 2. Improving the existing production line and expanding the production capacity of the chicken meat processing plant, one production line, by 500-600 million baht, 3. Investing in pet food business or businesses that create added value from by-products, by 200-300 million baht and 4. Use it as working capital for business operations and repaying short-term loans from commercial banks by 150-250 million baht.

Mr. Natafon stated that FM operates the investment business in other companies (holding company) and has 3 subsidiaries, consisting of 1. F&F Food Company Limited (FF), which operates the slaughterhouse and chicken slaughterhouse business. To sell chilled and frozen chicken meat and chicken parts to customers, 2. Spring Kitchen Company Limited (SK) operates a chicken meat processing plant. Which is assigned to produce products for companies that will sell the products under their own brands (OEM) and 3. F&F Pet Food Company Limited (FFPF) operates the manufacturing plant business.
The current pet food business is not yet operational The initial plan is to invest in contract manufacturing businesses for companies that will sell finished pet food under their own brand (OEM) using the company's chicken by-products. F&F Food Co., Ltd. is the main raw material.

With more than 40 years of experience in broiler production, FM management is well accepted in the industry and the company is committed to developing sustainable food products with technology and quality in accordance with international standards. To create added business value along with product development together with customer alliance groups. To meet the lifestyle needs of consumers currently, whole chicken products produced by FM are sold domestically and internationally, such as the European Union, the United Kingdom, Japan, Canada, Hong Kong SAR, South Korea, Cambodia, China and Singapore. Including the company's plan to expand the market to new countries. With growth potential, especially the Middle East countries.

For past operating results FM has a continuous net profit. Overall, the operating results during the period 2021-2023 achieved a total income of 4,166.42 million baht, 5,825.72 million baht, and 5,782.16 million baht, respectively, and a net profit of 183.72 million baht, 840.67 million baht, and 254.69 million baht, respectively, calculated as profit ratios. 4.43%, 14.48% and 4.42% of sales revenue, respectively, while the total income in the first quarter of 2024 was 1,737.18 million baht, an increase of 22.81% compared to the same period of the previous year of 1,414.58 million baht. The net profit was 124.59 million baht, an increase of 70.53% compared to the same period of last year, which had a net profit of 73.06 million baht.

“FM management is focused on creating added value in cooked CAV products along with employing new technology and innovations (food technology) in production. To increase the value of the product which will lead to the company having a high profit margin we have a diversified customer base locally and internationally. Our products are sold in convenience stores and department stores. World class restaurant network, so we are confident that this listing in SET will support our business. FM is growing stronger than ever. And create sustainable growth in operating results,” said the CEO of Facilities Management.

Listing on SET is an important step in continuing to grow the business. It helps to increase confidence for customers and partners. As well as creating new business opportunities for steady growth and good returns for investors, FM is one of the food companies that stands out from the rest. Using technology and innovation in production. Focusing on CAV product, which is a value-added product. And has a high margin including a core business background. And a strong financial position. In addition, operating results continue to grow every year, with an average growth of 18% over the past three years, and we are confident that we will be able to maintain this level of growth continuously in the future.

In addition, the company aims to become one of the leading companies in the export of processed chicken. Therefore, we are confident that the stock will receive good interest and response from investors. Presentation of information (roadshow) in a mixed format on online and offline platforms for investors to understand the business in general. Future operations plan including the growth potential of FM as a business. This is different from other operators in the industry and is focused on the production and distribution of cooked cooked chicken (Culinary Value Added Products: CAVProducts) that uses technology and innovation (Food Technology) in production. This results in a higher gross profit margin than cut chicken products. It continues to trend in consumer demand, therefore, we are confident that we will see an opportunity for rapid growth in the facility management sector in the future.

Anantadit Phongphan