MAMA MAKER SEES GREEN SHOOTS OF RECOVERY IN NOODLE SALES

       Thai President Foods, the maker of Mama instant noodles, is bullish over the prospects of a recovery in the Thai and global economies after it reported double-digit sales growth for the first six months of the year.
       "The economy has [probably] bottomed out, as domestic sales and foreign orders have returned. As well, the latest US economic indicators are not as bad as expected. Still, the recovery may not be V-shaped. That means we need to monitor the situation closely," said president Pipat Paniangvait.
       Meanwhile, the University of the Thai Chamber of Commerce's latest survey showed consumer confidence rose in July for the second consecutive month as a result of the government's measures to boost the economy.
       Consumers are, however, concerned about the impact of rising oil prices and the type-A (H1N1) flu outbreak, the survey found.
       Finance Minister Korn Chatikavanij yesterday said the US Federal Reserve's decision to keep its key lending rate at 0-25 per cent was a further signal of improved global economic conditions.
       But he said the situation was remained volatile, as Thailand relied heavily on exports. Economic recovery could lead to higher oil prices and negatively affect operating costs and domestic spending.
       Still, he believes the Thai economy will swing back into positive territory in the final quarter of the year, due to the government's stimulus package.
       Thai President Foods achieved 13-per-cent annualised sales growth in Mama in the first half, against expectations of 9 per cent, thanks to two new flavours: chicken soup and egg. Launched in March, the new flavours now enjoy a 5-per-cent share of the instant-noodle market.
       Pipat said Mama exports also increased, by 21 per cent year-on-year in the first half, against 19 per cent a year ago, as the company had expanded into new markets like Peru and Romania.
       The company will increase production capacity of the new flavours. It is in talks with a Japanese manufacturer to buy two machines for Bt160 million that will increase Mama production capacity by 7 million sachets a day next year, from 6.2 million now, he said.
       Thai President Foods also plans to increase its exports of cup noodles next year. It is talking to an agent in Hong Kong about distribution, either through the Mama brand or an original-equipment manufacturing deal.
       Despite the good first half, Thai President Foods is maintaining its estimate for full-year sales growth for all its products at 12.5 per cent to Bt9 billion, from Bt8 billion last year.
       Although instant-noodle sales have grown, its confectionery products suffered a sales drop of 20 per cent in the first half. The overall Thai confectionery market fell 30 per cent in the period.