XO Foresees a Promising Outlook in 2Q, Expecting Sales to Grow 30% QoQ

Exotic Food (XO) is convinced that sales would increase 30% quarter over quarter in 2Q21, disclosing new strategies to assist distributors in paying listing fees and placing product sales, in the hopes of significantly boosting sales growth. This year, XO has established a payment limit of 10-15 million baht.

 

On May 19, 2021, Mr. Jittiporn Jantarach, Managing Director of Exotic Food Public Company Limited (XO), gave an exclusive interview to “Kaohoon Jortalad Program,” revealing that the company foresaw a promising outlook in 2Q21 (April-June, 2021). Sales are forecast to increase by 30% compared to the previous quarter. XO currently has a total sales volume of 450 million baht, up from 351.54 million baht in the first quarter of this year. XO also stated that the gross profit margin (GP) would not be less than 45%, with the potential of beating the 45.46% GP in 1Q21.

 

Main factors contributing to the growth in 2Q21 include offering an assistance for distributors in paying listing fee for placing product sales and XO has laid down the maximum annual amounts for listing fee expenditure at 10-15 million baht. Helping to pay for listing fees will benefit XO as it will allow distributors to diversify products sold in more diverse stores, resulting in a substantial rise in XO’s sales.

 

Mr. Jittiporn further disclosed that XO’s largest customer base is still in the European region at the present. In the first quarter of this year, revenue from the European market accounted for 86-87% of total revenue, while revenue from the Asian market accounted for only 4-5%, and revenue from China accounted for less than 1%. Therefore, XO intended to expand its business in China, using the same model to assist distributors in paying listing fees, which is a tangible approach that can boost revenue.

 

Despite the fact that the European market is smaller than China’s, however, it is indeed a significant market for XO, with room for expansion, since Europeans enjoy cooking with a variety of sauces. As a result, many foreign sauces are available in European supermarkets, even though XO products are not yet broadly available in Europe. It’s also a chance for XO to flourish business in the European region.