ZEN targets FY2019 revenue growth within 15-20% range, highlights astounding 71.4% earnings growth to THB 140.2m, existing restaurants' continued sales rise in FY2018
ZEN has set its sales growth target within the range of 15-20% and expects enhanced profitability for FY2019, after posting impressive FY2018 results, with earnings at THB 140.2 million (up 71.4%) and total revenue at THB 2.9647 billion, a healthy growth driven by the constant launch of new restaurants, the introduction of delivery service, the adjustment of management strategy, the upgrading of service quality aimed at raising sales to the target level and an average sales growth at 4.7% for the existing restaurants.
MR BOONYONG TANSAKUL, CHIEF EXECUTIVE OFFICER (CEO) OF ZEN CORPORATION GROUP PCL (“ZEN”), a food service company, said that ZEN is working to raise its revenue by 15-20% in FY2019 by opening new restaurants and pumping up revenue from connected businesses, e.g. delivery, retailing, and to keep improving its profitability by ensuring an effective control of costs and expenses. He added that the company expects to raise its profitability to the same level as that of the food industry as a whole within three years.
For FY2019, ZEN has allocated a budget of more than THB 230 million to finance the launch of new restaurants with both existing and new designs (those with the new design will be smaller in size and require smaller investment), the renovation and improvement of the existing restaurants and the upgrading of the IT infrastructure, to ensure that it will reach its revenue and earnings growth targets. The directly-owned restaurants to be launched this year will total approximately 36.
“With our plan, we are confident that we will successfully maintain the growth momentum from FY2018. We own as many as 12 Thai and Japanese restaurant brands to attract target consumer groups with different levels of purchasing power, and we have introduced delivery service as an additional option for the consumer”, he noted.
MS YUPAPHAN EKASITTIKUL, CHIEF FINANCIAL OFFICER OF ZEN CORPORATION GROUP PCL (“ZEN”), revealed ZEN’s outstanding profit and revenue growth rates for FY2018, with net profit at THB 140.2 million (a 71.4% Y-o-Y rise from THB 81.8 million) and total revenue at THB 2.9647 billion (a 17.9% Y-o-Y rise from THB 2.5152 billion), the highest revenue level since ZEN’s inception. She attributed the growth to i) a 4.7% Y-o-Y growth on average in sales from the existing restaurants following the regular introduction of new menus to the market, the adjustment of the company’s management strategy and the upgrading of service quality; ii) the expansion of new restaurants by ZEN and its franchisees; iii) the introduction of new businesses involving provision of delivery service and retailing of ready-to-cook and ready-to-eat food products to make ZEN’s product offerings fit the consumer’s lifestyles ; and iv) the better management of sales, general and administrative (or SG&A) expenses and the rejig of ZEN’s logistics system involving the selection of professional providers with specific expertise.
“Our investment in the improvement of our internal management system bore fruit last year, with the net profit margin rising to 4.7%. We are confident of our ability to raise the margin even further in the future”, she stated.
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