Neo Corporate Public Company Limited (NEO) announced strong Q1/2025 operating results, with total operating revenue reaching THB 2,589 million, a 4.7% YoY increase fueled by growth across all product categories. International revenue rose 10.3% YoY, and net profit increased 6.7% QoQ to THB 256 million. NEO’s performance, achieved despite economic headwinds, was driven by product improvements, consistent SKU expansion in alignment with the Segment Creator strategy to meet evolving consumer behavior across all segments, efficient cost management, raw material inventory management, and effective expense control, strengthening its competitive edge.
Mr. Suthidej Thakolsri, Chief Executive Officer of Neo Corporate Public Company Limited, stated, “We maintained consistent growth in Q1/2025 despite unfavorable economic conditions. Sales in all key product categories grew well YoY, exceeding the FMCG market average. This resulted from our strategy focused on creating differentiation and directly addressing consumer needs, particularly by promoting well-received premium mass products, along with the Segment Creator strategy, which involves creating innovative new products to add excitement and fill gaps in market demand. Simultaneously, sales from international markets have begun to recover due to improvements and expansion of sales channels since last year. All of this has helped us achieve strong, consistent growth.”
“A key challenge was the increase in raw material costs due to the surge in global palm oil prices. However, through efficient cost management – including forward purchasing, careful management, and expense control – our cost of sales and expenses were not as high as expected. We also maintained a stable gross profit margin within 41-43% and a net profit margin within 8-10%,” added Suthidej.
Q1/2025 Performance and Growth Drivers
Q1/2025 operating results reflect NEO’s strength in maintaining consistent growth. Total sales grew in all key product categories: household, up 6.0% YoY; personal care, up 5.7% YoY; and baby & kids, up 2.1% YoY. This sales growth was mainly driven by Fineline fabric softener and liquid detergent, and BeNice shower cream and body lotion, resulting from the launch of the BeNice body lotion line since Q2/2024. D-nee also experienced good growth, partly due to the launch of D-nee Deluxe products, following the Segment Creator strategy to expand into new customer segments.
Furthermore, premium mass product sales grew 34% YoY, representing 5% of total sales, resulting from the strategy focused on differentiation and directly addressing consumer needs, particularly by promoting well-received premium products for the Silver Age group. At the same time, international sales recovered, growing 10.3% YoY due to brand expansion, new SKUs in key export countries, and improved and expanded distribution channels.
Another significant step was the launch of “LovliTails” earlier this month, NEO’s first new brand in 15 years and its expansion into the pet product market. The brand focuses on offering high-quality products that meet the needs of modern pet owners. The marketing strategy will emphasize communication through Influencers and KOLs, actual product users with influence on consumer decisions, with the goal of establishing the brand as a leader in the premium and premium mass markets within 3 years.
Business Outlook for 2025
For the second half of 2025, NEO plans to continue expanding production capacity to support future growth, investing in phased factory expansion in line with its growth plan to manage risk and reduce the financial burden of large-scale investments. 2025 CAPEX is allocated at THB 2,300-2,500 million, including construction of personal care product building and factory, completed 20 March 2025 and scheduled to be fully operational this year, and construction of a household product factory, Phase 1 began 14 February 2025 with expected completion in November 2026 and Phase 2 completion expected in April 2028.
Simultaneously, NEO is focusing on improving e-commerce distribution channels, which grew 33% YoY to reach consumers directly and respond to increased online shopping, through increased live streaming and promotion of Affiliate Marketing. Smaller product sizes are also being offered, such as Fineline laundry detergent in 140 ml sizes and fabric softener in 150 ml sachets starting at THB 20, to respond to the rising cost of living.
In Q1/2025, NEO received “The Most Attractive Employer” award from Future Trend Award 2025, reflecting its commitment to a good working environment and attracting talent, and the “Excellence in Sustainable Research Collaboration Award” from Walailak University, demonstrating its commitment to sustainable business practices.
“Amidst challenging economic conditions, we remain confident in the trends of the FMCG market in Thailand and ASEAN in 2025. All of NEO’s product categories are essential in consumers’ daily lives. We are confident that we can maintain consistent growth by leveraging our strong brands and focusing on developing products with innovations that comprehensively meet consumer needs across all segments and dimensions, creating opportunities for long-term growth,” concluded Suthidej.