CMAN Adjusts Portfolio, Controls Costs, Expands into High-Potential Markets amid Stable Lime Market

Chememan reports Q1/2569 profits up 32% through efficient customer portfolio management, tight cost control, and internal efficiency improvements while preparing for challenging market conditions. Luang Chantrajuta Chantrathat, Chairman of Chememan Public Company Limited (CMAN), a lime and chemical products manufacturer under the "CHEMEMAN" brand, announced that Q1/2569 operating results showed combined revenue of 980 million baht, down 4.6% year-on-year, while net profit attributable to shareholders reached 172 million baht, up 32%.

Average selling prices declined due to increased competition and baht appreciation, but higher lime sales volumes to domestic sugar mill customers and foreign mining sector clients partially offset these impacts. The company achieved higher profitability through efficient customer portfolio management, increased production capacity utilization that reduced per-unit production costs, and lower operating expenses, resulting in gross profit margin rising to 41.4% from 36%. Financial costs decreased due to lower interest rates and reduced total debt, while tax expenses declined from increased tax benefits, driving higher shareholder profits.

"Overall conditions in 2569 present significant challenges," Luang Chantrajuta stated, "with market forecasts suggesting lime demand will remain flat or grow modestly. We've prepared by investing in operational efficiency improvements and continuous cost management, including installing 8.7 MW solar capacity at our Thai facilities, enabling strong competitiveness even in economic slowdowns."

The company has both short-term and 2-3 year plans to address market challenges. Short-term strategies include timely cost management such as purchasing additional electric trucks for raw material and product transport to offset rising fuel costs, and postponing non-essential investments. Medium-term plans involve expanding business in strategic regions including India, Indonesia, and Australia; strengthening long-term partnerships with strategic allies and key customers; and driving new efficiency strategies to reduce costs and operational expenses sustainably.

Investment initiatives include alternative energy projects and technology and digital systems to reduce work steps, lower costs, and improve production and service processes. "The company has chosen a strategy of 'defending strongly while aggressively pursuing high-potential markets,' emphasizing internal efficiency improvements through technology," the chairman noted. "One key reason we established Gristman Company was to develop cutting-edge technology and STEM resources for managing our expanding asset portfolio across the Indo-Pacific region."