AAI Achieves Record 283% Profit Surge, Plans Further Growth

Asian Alliance International (AAI), a top Thai pet food manufacturer, posted exceptional Q3/2024 results, fueled by increased demand for pet food and strategic investments.

Outstanding Financial Performance

AAI recorded THB 1,872 million in revenue for Q3/2024, up 37.8% from THB 1,359 million in Q3/2023. This also marked a 9% rise from Q2/2024. Net profit surged 145% to THB 289 million compared to THB 118 million last year. However, this was slightly below the Q2/2024 figure of THB 300 million. The gross profit margin improved to 19.1%, up from 16.1% last year, but lower than Q2/2024’s 25.7%.

For the nine-month period ending September, AAI’s total revenue reached THB 5,078 million, growing 28.7% year-on-year. The pet food segment led this growth, while human shelf-stable food sales decreased. Net profit jumped 283.4% to THB 831 million, reflecting a strong gross profit margin of 21.8%, significantly higher than last year’s 12.7%.

Growth in Pet Food Demand

International pet food markets continue to thrive, driven by new product launches from major brands catering to specialized pet nutrition. AAI developed 52 new products for clients, including 34 for cats and 18 for dogs. While the domestic pet food market remained competitive with a focus on affordability, international demand supported AAI’s growth.

Human Shelf-Stable Food Highlights

Tuna products performed well in Middle Eastern markets, especially Saudi Arabia, aided by declining raw material costs. However, the segment contributed less to total revenue compared to last year.

Revenue Goals and Strategic Direction

AAI targets total revenue of THB 6,500 million in 2024, a 19% increase from last year, with THB 5,700 million expected from pet food and THB 800 million from human shelf-stable food. Efforts to boost branded product sales to 10% of revenue include expanding distribution and targeted marketing.

Production Expansion and Budget Adjustments

The company began dry pet food production under its “Pro” brand in August. Plans are underway to increase wet pet food capacity to 59,000 tons annually by Q1/2025. Construction of an automated warehouse has been delayed to 2025, reducing the 2024 investment budget to THB 250 million from the initially planned THB 430 million.