SET-listed WP Energy, Thailand's third-largest liquefied petroleum gas (LPG) trader, has decided to exit the food chain business by disposing of its investments in Wonder Food Holding in order to adjust its investment plans.
Chomkamol Poompanmoung, chief executive of WP Energy, said the asset disposal, which was approved by the WP Energy board late last month, is needed as the company wants investments that best suit its business structure.
She said the move will not impact the operation or financial position of the company.
WP Energy will sell its stake to Wonder Food Holding founder Ratchapas Youngeksakul.
WP Energy acquired a 50% share in Wonder Food from Mr Ratchapas in 2020 as it aimed to have a new source of revenue and profit by earning money from the six brands of the food franchise business, with an average of margin of 20-30% total revenue.
Noppavong Omathikul, deputy chief executive of WP Energy, said the company has maintained its total revenue target of 5% growth, with a goal of 12 billion baht, up from 11.5 billion last year.
Sales volume is expected to rise by 7.1% to 765,000 tonnes, up from 714,738 tonnes last year.
The growth is attributed to the capped price of LPG and higher demand from the industrial sector despite the global oil price surge, driven by the Russia-Ukraine war.
WP Energy expects its sales to increase to a similar level as recorded in 2019, following a two-year decline.
