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Soy Leader with Solid Profitability

Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Thai Vegetable Oil Public Company Limited.



Background

Thai Vegetable Oil Public Company Limited (TVO) is a producer and distributor of soybean meal and oil.

The company operates four crushing facilities and three refineries in Thailand and exports its products to countries such as Singapore, Malaysia, Myanmar, and Cambodia.

Business Description

TVO operates four crushing facilities and three refineries in Thailand.

TVO produces soybean meal distributed mainly under the TVO Hipromeal and TVO Full Fat Soy brands. Its soybean meal is largely used in swine, chicken and shrimp farming as feed due to its high protein and energy content. It also facilitates ease of digestion.

The soybean oil produced by TVO is sold in stores for home use and in bulk to food manufacturers. The food industry uses it for canned food as a major ingredient because it keeps its liquid form even when exposed to cooler temperatures, unlike other vegetable oils. It also has higher nutritional value than, for example, palm oil.

The company has 32% stake in Prodigy Public Company Limited (PDG TB) which is engaged in manufacture and distribution of packaging.

The company exports its products to countries that include Singapore, Malaysia, Myanmar, Cambodia, Vietnam, and South Korea.

Leadership

The Chairman of the Board is Sompol Kiatphaibool. He is an independent director and was appointed Chairman in October 2001.

Charuphot Neesanant was the Managing Director of the company from August 1993 to December 2013. Witoon Suewatanakul was appointed to take over after Charupot, and is the current Managing Director of Thai Vegetable Oil.

When you look at the Profitable Growth rank in the chart below you’ll see from the blue arrows what time period we assign to each of the leaders. We don’t assign 2014 to any of them, but leave that as a grace period. The rationale is that it will take some time for the new leader’s strategy to take effect.

Charuphot Neesanant’s last year was the only year where TVO didn’t rank in the top decile on Profitable Growth. When Witoon Suewatanakul took over as Managing Director, the rank returned to the top and the rank has been maintained ever since.

World Class Benchmarking

Profitable Growth has maintained its #1 rank except for a dip to #4 in 2013. This means TVO ranks better than 531 of 590 large Consumer Staples companies globally.

Profitability maintained its #1 rank. This means TVO ranks among the best 59 large Consumer Staples companies globally on ROA. Growth fell to #6 from #5.

Asset utilization and Profit margin are strong, and have remained unchanged since 2014. Sales growth is the main drag for TVO’s Growth rank. Margin change worsened to #4 from #3.

 


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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.