New flavours help Mama first-half sales surge 13%

       Thai President Foods Plc, the manufacturer of Mama instant noodles, saw its first-half sales rise by 13% from the same period last year.
       The Saha Group's SET-listed affiliate posted double-digit growth for the first time in a decade and outpaced the 3%growth posted for the overall instant noodle industry.
       The sharp growth was driven mainly by the launch of two new flavours in the first quarter - chicken soup and egg protein - priced at 5 baht per pack, one baht cheaper than its regular products.Sales of instant noodles typically increase in times of economic weakness as consumers cut back on restaurant spending.
       TF president Pipat Paniengvate said the budget instant noodles had helped boost Mama's overall market share every month since April.
       Its market share rose to 53.9% in July up from 53.4% in the previous month.
       Sales of TF's snack products dropped by 20% in the first half while the industry declined by 40%.
       Due to the better-than-expected response to its new flavours, TF will introduce them in a cup format for 10 baht,compared to the normal 13 baht. Mr Pipat expects to gain about a 5% share from the new cup noodles, with sales of 40,000 to 60,000 cases per month. The new cup noodles should help expand Mama's this year by 10%, compared to the industry projection of 3-5% growth in a market worth 11 billion baht.
       Mr Pipat believes the economy has hit bottom now as unemployment in the US is declining.
       "We are receiving new orders from our partners overseas," he said.
       The company's exports of instant noodles rose 25% in the first half.
       TF plans to aggressively move into international markets in the second half to create new demand.
       It currently sells Mama in five zones overseas now and wants to open at least one new market in each trade zone every year.
       Because of local and overseas demand,the company will spend 160 million baht to install two new machines at its Si Racha factory in the second half. Overall capacity will increase by 10% to 7 million packages per day.
       Mr Pipat expects the company's total sales - instant noodles, biscuits and snacks - to grow by 10% to at least 8 billion baht by the end of 2009.
       TF shares closed yesterday on the Stock Exchange of Thailand at 510 baht,up six baht, in trade worth 765,000 baht.