Ubon Bio Ethanol Public Company Limited or UBE reported its operating results for the first quarter of 2023 with revenue of 1,499.2 million baht, loss of 26.2 million baht from the major flood crisis at the end of 2022, which resulting in increased cassava costs. The company has adjusted strategies to bring innovation and technology to create high-value products to meet the trend of healthy consumption, including focusing on raw material management by promoting efficient agriculture, strengthening the foundation to become a strong and sustainable food tech company.

Ms. Sureeyot Khowsurat, Chief Executive Officer and Managing Director of UBE, a Thailand’s leading manufacturer and distributor of processed cassava products, including ethanol products, tapioca starch and cassava flour, and other organic agricultural products revealed that “overview of operating results in the 1st quarter of 2023 is a challenging period due to both the high cost of raw materials and the greatly reduced supply of cassava caused by the major flood crisis in Ubon Ratchathani province and surrounding areas in the fourth quarter of 2022. This is believed to be the largest flood in more than 43 years, directly affecting cassava growing areas and resulting in a more than 30% reduction in cassava supply for this season, the company therefore has continuously adjusted its business strategy to mitigate the situation. In term of the ethanol business, sales of fuel grade ethanol remain stable, benefiting from the opening of cities and the tourist season, however, the company plans to increase sales volume by promoting the use of gasohol E20 as a primary oil fuel, it is also expected that there will be positive results from the recovery of tourism and approximately 30 million foreign tourists returning to Thailand in 2023, which will support the demand for ethanol use during the rest of the year. As for industrial grade ethanol, the demand has decreased as a result of the COVID situation, which is beginning to subside, hence the company has continued its promotional activities and continues to push for the liberalization of industrial grade ethanol in the country in order to increase sales volume. The tapioca starch business was impacted by the global economic slowdown, the company has adapted its strategy by expanding into new foreign markets which including the introduction of cassava flour to be used as an ingredient in customers' various products and increasing marketing channels to reach consumers in the country. Recently, they have added channels to sell Cassava Flour Batter Mix under the Tasuko brand in various convenience stores. In addition, the company remains open to innovation in research and development to promote the development of tapioca starch and cassava flour products into a high-value product with a wide range of applications, which is considered one of the strategic steps towards becoming a food tech company in the future."

UBE's operating results for the first quarter ended March 31, 2023. The company recorded total revenues of 1,499.2 million baht, a decrease of 3% from the same period last year, and a net loss of 26.2 million baht. This was mainly due to the cost of cassava raw materials and lower sales volumes of industrial grade ethanol and tapioca starch.

As for the operating direction in the second quarter of 2023, it is still a challenging period due to the quantity of cassava raw materials and its price remaining stable at a high level. However, it is expected that the raw material shortage situation will be resolved in the third quarter of 2023 when the new season's products will be harvested, coupled with the recovery of tourism, will support the demand for ethanol. The company continues to pursue its strategy of cooperation in product research & development in order to increase the proportion of sales of high-value products. In addition, the company continues to study and seek opportunities to expand into new business areas while utilizing cost management strategies and focusing on marketing activities both by entering new markets abroad and by expanding sales channels for domestic products to be more diverse and continuous. In addition, the company also attaches importance to creating sustainability in terms of raw materials by promoting the "Northeast S 2 Model Project" (formerly the Ubon Model Project), which integrates cooperation between the public and private sectors and improves the quality of life for farmers by reducing costs, increasing productivity and enabling sustainable management of organic cassava plots.