Ubon Bio Ethanol Public Company Limited or UBE reports its operating results for the 2nd quarter of 2023 with revenue of 1,252.47 million baht, loss of 106.64 million baht due to there was a maintenance shutdown according to the annual plan of both an ethanol plant and tapioca starch plant during the quarter. In addition, the temporary shutdown of the tapioca starch production plant due to the shortage of cassava raw material, where the amount of raw material was continuously affected by the major flood crisis in late 2022 in the Ubon Ratchathani area and neighboring provinces. As a result, production is lower than in the previous season. However, operating results are expected to recover in the third quarter of 2023 as the raw material situation has started to ease and the tapioca starch factories have resumed production since the beginning of July. Meanwhile, the ethanol and coffee businesses continue to grow. The company is committed to promoting research & development, along with continuous expansion of the business in high value products to be consistent with the business strategic plan and promote the country's bio-based industries, coupled with raw materials management with strategies to create mechanisms to increase productivity to achieve sustainability in business operations in all dimensions.

Ms. Sureeyot Khowsurat, Chief Executive Officer and Managing Director of Ubon Bio Ethanol Public Company Limited or UBE, a Thailand’s leading manufacturer and distributor of processed cassava products, revealed that “Overall performance in the second quarter of 2023 is still expected to be under pressure from external factors, especially in the tapioca starch industry, which is affected by various factors such as high raw material costs and shortage of cassava supply in the Ubon Ratchathani area due to the impact of the major flood crisis in Ubon Ratchathani province and surrounding areas. As a result, the amount of produce that comes out during the season decreases and runs out faster than every year, coupled with a slowdown in overseas demand. As for the domestic marketing strategy for cassava flour products under the Tasuko brand, we continue to expand our sales channels to reach more consumers. Regarding the pursuit of innovation strategy goals in research and development, progress is being made in cooperation with business partners, such as cooperation with Biom Company Limited in the development of enzyme technology, etc., to help reduce costs and improve production quality. This collaboration will advance the development of tapioca starch and cassava flour products into high-value products with more variety for customers. As for the ethanol business, since the Covid-19 situation has been resolved, there has been a maintenance shutdown according to the annual plan in order to prepare to bring raw materials in stock into the production process in a timely manner according to customer needs, resulting in increased travel. As for the Ubon Bio Agriculture business, it saw growth in coffee products this quarter.

UBE's operating results for the second quarter ended June 30, 2023, the Company had total revenues of 1,252.47 million baht, a decrease of 31% from the same period last year (YoY), with a net loss of 106.64 million baht. This was mainly due to the maintenance shutdown of the ethanol plant and the tapioca starch plant according to the annual plan and the temporary shutdown of the tapioca starch plant due to the shortage of cassava raw material.

"As for the business direction in the second half of the year, operating results are expected to recover from the raw material shortage situation as some areas have started harvesting and raw materials are arriving at the factories. The tapioca starch factory will be able to return to normal operations as the new season's cassava production starts to arrive from the beginning of the third quarter of 2023. And this year, the maintenance shutdown of the ethanol plant and the tapioca starch plant will not exceed the budget and will be ready to produce at full capacity to support the recovery situation of the tourism sector. In addition to the above-mentioned research and development of the tapioca starch industry, the company is also continuing research and development of products in the ethanol industry, which can be expanded into new industries using ethanol as an ingredient by using a biological basis for development according to the concept promoted by the government, and aims to make Thailand the BIO HUB OF ASIA by 2027. The company is willing to contribute to the development of the economy according to the BCG model by applying research and technology to increase productivity and reduce costs by developing the upstream part, namely farmers, along with continuous cooperation with the Ministry of Agriculture and the Institute of Agricultural Technology and Innovation Management, National Science and Technology Development Agency (NSTDA) to create growth and sustainability in all dimensions," Ms. Sureeyot concluded.