UBE reported revenues of 3,366 million baht for the first half of the year, with profits increasing to nearly 200 million baht, resulting in a net profit margin of 5.9%. This growth was driven by the starch and flour business, benefiting from higher average selling prices due to currency depreciation, along with reduced interest expenses. Expectations for the second half of the year include continued growth in flour sales from both domestic and international orders. UBE plans to advance with a budget of 550 million baht to expand production capacity and enhance quality in both ethanol and tapioca starch and cassava flour businesses, supporting future growth.

Ms. Sureeyot Khowsurat, President of Ubon Bio Ethanol Public Company Limited or UBE, the largest well-integrated tapioca player in the northeast region of Thailand using cassava roots as raw materials revealed that the company disclosed its operating results for the first half of the year, highlighting strong sales growth driven by the recovery of its main business compared to the same period last year, which was affected by the COVID-19 outbreak. Expectations for the second half of the year include continued growth, bolstered by strong sales volumes of ethanol and increasing orders for high-margin products such as organic cassava flour and cassava flour.

“With the country's economic situation improving as Covid-19 concerns resolve and full reopening occurs, coupled with a depreciating baht, the company's operating results have seen a positive impact. This year, the company expects to achieve income targets of approximately 7-8 billion baht, reflecting growth of approximately 10-15%.” Ms. Sureeyot said.

In the second half of 2022, the business is expected to grow in line with the full-year revenue target of 10-15%, supported by an investment plan of approximately 550 million baht aimed at expanding production capacity and enhancing efficiency. Both the ethanol and starch production lines will see significant upgrades, with a target to increase cassava flour production capacity from the current 100 tons per day to 300 tons per day, solidifying our position as Thailand's leading cassava starch producer. For the ethanol business, production capacity will be increased from 400,000 liters per day to 450,000 liters per day next year to address bottleneck issues.

Simultaneously, the company is actively developing new products in the organic cassava flour category to meet the growing demand from health-conscious consumers and to maintain its customer base in both domestic and international markets, including Europe and America. Additionally, the company has expanded its distribution channels for cassava flour to include leading department stores, convenience stores, and general retailers, making it more accessible and convenient for consumers to purchase. This initiative is expected to contribute additional income to the company.

Mr. Chun Phokaisawan, CFO at UBE, summarized that UBE's operating results for the first half of 2022, ending on June 30, 2022, reflect total income of 3,366 million baht, marking an increase of 417 million baht or 14.1% compared to the same period last year. The company achieved a net profit of 199 million baht, up by 93 million baht or 87.0% from the previous year. In the second quarter, the main business saw results similar to the previous quarter, albeit impacted by planned annual maintenance shutdowns and losses from exchange rate hedging. The ethanol segment experienced improved margins due to higher-than-expected sales volumes of industrial-grade ethanol. The starch and flour business also grew, particularly in general and organic tapioca starch and cassava flour sales. Organic cassava flour, notably popular in foreign markets like Europe and America, contributed to this growth, with cassava flour sales reaching nearly 1,000 tons in the first half of the year, compared to only 199 tons for the entire previous year.