Neo Corporate, listed on the SET, aims to focus on the premium market and export opportunities to achieve double-digit growth annually over the next five years. This strategy comes after the company recorded revenue growth that surpassed the market average across all three categories of fast-moving consumer goods (FMCG) last year.
Patama Thakolsri, the deputy chief executive of commercial operations at Neo, stated that the company aspires to become a leading FMCG brand in the region by offering an extensive product lineup that addresses all market segments.
The company has eight brands spanning three categories: household goods, personal care, and baby and children’s products, totaling 1,100 items.
In the first half of the year, Neo reported revenue of 4.96 billion baht, reflecting an 8.6% increase from the previous year. The household goods category contributed the largest share at over 41%, followed by 32% from baby and children’s items, and 27% from personal care products.
The gross profit saw a year-on-year improvement of 23.2%, reaching 2.3 billion baht. Notably, the second quarter marked the highest quarterly gross profit margin for the company at 46.8%, due to effective expense optimization.
Mrs. Patama indicated that three product categories are projected to outperform the market average between 2022 and 2023. In particular, baby and children’s products, where Neo holds a 74% market share, are expected to see sales growth of 10.4%, compared to the industry’s rate of 7.6%.
To capitalize on high-spending consumers and the rising health and wellness trend, Neo is also introducing more premium products, which tend to offer better margins than mass-produced items. This year, premium products are expected to account for 5% of total revenue, with projections to increase to 10% by 2026.
In the first half of the year, the company launched several new premium offerings, including D-nee Deluxe, aimed at older consumers.
Mrs. Patama added that Neo plans to intensify its overseas expansion, targeting distribution in 28 countries by 2028, an increase from 16 last year.
Typically, the company enters new markets through its baby and children’s care brand, D-Nee, which generates 80% of sales in international markets.
This year, Neo aims to penetrate seven new markets, particularly in South Asia and the Middle East, as countries such as Qatar, Bahrain, and Pakistan have high birth rates.
Vietnam remains the largest market for the company’s exports, accounting for over 50% of total sales.
