Consumer products/Neo Corporation

Editorial staff

Neo Corporation Plc (NEO), one of the country’s leading marketers, manufacturers and distributors of consumer products, sets to explore new opportunity in Southeast Asia, South Asia and Middle East market this year.

Patama Thakolsri, Neo’s deputy chief executive officer-commercial, said that the company has already expanded its business in seven countries in the first seven months of this year and is expanding more in four new countries in South Asia including in Qatar, Bahrain, Pakistan and Afghanistan and another four countries in Middle East market are under negotiation.

Patama Thakolsri

The company expects that its products to be sold in 28 countries within 2028, from 16 countries in 2023. The proportion of revenue from abroad will increase to more than 15%, up from 10% at present.

‘’Neo will become an innovative fast moving consumer good (FMCG) company in Asia,’’ she said.

To grow international market, the company will cater all eight brands with three categories to the market both existing brands, new brands, new products and new countries. Consumer products has huge potential to grow abroad. It is expected that household products in Southeast Asia to grow by average of 9% during 2024-2025 and 15.1% growth and 8% growth for household and personal care in Middle East and Africa as well as South Asia respectively.

In addition to high growth demand, the birth rate in South Asia is also high.

For five-year business plan for domestic market, the company will expand to new product segment with high growth potential, more innovation-led premiumization will be developed to cater to fit with lifestyle consumers.

‘’We are confident that our revenue to grow double digit this year,’’ she said.

Nisara Takolsri, Neo’s deputy chief operating officer, said the continuous move of innovated product offering, has reinforced the company’s growth and success.

Nisara Takolsri

In 2022-2023, Neo’s laundry products grew by 31.0% while the market grew by 19.5%. Roll-on products grew by 35.7% while the market grew by 12.9% and baby 's laundry products grew by 10.4% while the market grew by 7.6%

To support its long term growth domestically and internationally in the next 5 years, the company plans to upgrade the production process and expand production capacity with modern technology in all 3 product groups (household products, personal products and baby and kid’s products).

The company's total production capacity will increase to approximately 400,000 tons per year from the current approximately 230,000 tons per year. In addition, the factory also focuses on ESG (Environmental, Social and Governance) with both raw materials used in the production process and packaging are environmentally friendly due to made from recycled or natural materials.BNeo aims to reduce greenhouse gas emissions by 20% by 2030 for world’s sustainable future.

Patchanok Worasakyothin Neo's chief financial officer, said that Neo revenue was 2.49 billion baht in the second quarter of this year, 9% higher than the same period last year. Its net profit was 269 million baht in the second quarter of this year, up 72% from the same period last year.

Patchanok Worasakyothin

In the first half of the year (January-June 2024), total sales revenue increased by 9% from the same period last year to 4.96 billion baht with net profit of 537 million baht, a 60% increase from previous year.

The growth is because the company has offered new products and innovations to the market. It has also improved existing products to be better usage efficiency for consumers of all genders and all ages in various dimensions, and expand its portfolio from mass to premium mass, recruiting new customer base.