Exports boost i-Tail’s performance in 2022
The Union Thai pet food division saw full-year sales soar by 47.4% in 2022, and profits improve by 61.8%.
The Bangkok-based pet food manufacturer posted sales of Thai Baht (THB) 21.4 billion ($620M/ €582M) in 2022 and a net profit of THB 4.4 billion ($127/€120M), up 61.8% from 2021.
Its gross profit increased by 59.4% to THB 5.3 billion ($153M/ €144M) in the year, and i-Tail attributes the “terrific” results to elevated demand from the US, European and other Asian markets.
North America continues to dominate i-Tail’s bottom line, accounting for 55% of total sales in the year, followed by Asia and Oceania with 29% and Europe with 16%.
Cat food sales attributed to the lion’s share of the earnings – 73%, with treats at 15% and dog food responsible for 12% of sales in 2022.
Innovative approach
CEO Pichitchai Wongpiya said that 2022 emphasised its innovation strategy – leading to the brand’s offering of premium-quality new products, adding: “With the tailwind of higher demand from global markets, we expanded our customer base and improved operational efficiency thanks to diligent production and cost management.”
i-Tail has been seeing a steady incline over the years, claiming to have nearly tripled growth compared to its competitors in the market.
In the last four years, ITC says it posted 25% year-on-year growth in sales compared to the global pet food industry’s compound annual growth rate of 8.7% from 2019 to 2022.
It continues to build on this momentum by investing THB 4.2 billion ($121M/ €114M) to further raise production capacity by 2025, construct a new facility in Samut Sakhon (48km from Bangkok), and set up an automated warehouse in Songkhla, near the Malaysia border.
The investment is also said to include “corporate innovation programs” to predict future market needs.
Late last year, it announced plans to expand to China and Europe, with new subsidiaries in Shanghai and Utrecht.