KTIS Expects an Increase in 2018 Sugar Cane – Sugar Volumes after Vibrant Growth of Over 15 Billion in 2017
KTIS Group, a leader in sugar and related industries, believes that the 2017/2018 production season will see even more crushed cane volume fed to mills than the previous one, driving all relevant industries such as sugar, pulp, ethanol, and power. In the first nine month of this year, the revenue has reached 15,305.3 million baht, greater than that of the entire 2016, with the profit of 1,140.2 million baht, 4,307% greater than the same time of the previous year.
Mr. Nathapun Siriviriyakul Deputy Chief Executive Officer of Kaset Thai International Sugar Corporation Public Company Limited (KTIS), a leader in sugar and related industries, revealed that KTIS has begun crushing sugar cane for the 2017/2018 production season. It is expected there will be more sugar cane to feed its three sugar mills, namely Kaset Thai Sugar Factory, Thai Identity Sugar Factory, and Kaset Thai Factory Branch 3, than the season 2016-2017 due to higher rainfall. Also, with an attempt to work more closely with sugar cane farmers, a higher yield per rai is expected.
“With higher sugar cane volumes, we will be able to produce greater output of sugar as well as other by-products such as pulp, ethanol, and power from biomass fuels. We also believe that global sugar prices has further room to grow” said Mr. Nathapun.
When considering each individual business, it is found that its ethanol production and sale usually grows well in the 4th quarter every year, while its biomass power generation business that supplies power to EGAT has not been as successful as the company’s three power plants have not been fully operational due to certain fuel and machinery problems. However, from this cane-crushing season onwards, these problems will no longer exist, and the revenue from this business will start to reach its full potential. For bagasse pulp production and sale, the demand has seen a positive trend.
Mr. Nathapun further explained that in the first nine months of 2017 (January-September 2017), KTIS generated the gross income of 15,305.3 million baht, surpassing the total annual income of 15,086.6 million baht in 2016. The profit for the first nine months of 2017 was 1,140.2 million baht, exceeding that of the same time of the previous year by 4,307%.
In addition, in the third quarter (July-September 2017), the income from production and sale of bleached pulp made from bagasse grew by 30% due to higher sale despite lower average prices, followed by the production and sale of ethanol, which saw a 8.7% growth due to higher sale prices. Also, sugar production and sale also witnessed a growth of 4%.
