Zen Group is a holding company that invested in 9 subsidiaries which operate the business in main groups as follows:
1) Restaurant service business under the company's brands
2) Franchise business 3) Commercial food retail business 4) Other related business i.e. food delivery service and catering service.
| 2023 | 2022 | 2021 | 2020 |
|---|
| Revenues | 3,945.38 | 3,413.12 | 2,255.32 | 2,333.39 |
| Expenses | 3,691.44 | 3,167.21 | 2,328.00 | 2,383.17 |
| Net Profit (Loss) | 157.60 | 153.91 | -91.57 | -63.66 |
| Assets | 3,239.85 | 2,824.33 | 2,557.20 | 2,688.96 |
| Liabilities | 1,760.98 | 1,478.06 | 1,397.83 | 1,477.83 |
| Shareholders' Equity | 1,393.42 | 1,280.76 | 1,122.45 | 1,211.13 |
| Operating | 477.43 | 522.52 | 239.79 | 316.24 |
| Investing | -293.21 | -287.60 | -93.46 | -45.75 |
| Financing | -231.55 | -175.03 | -147.34 | -365.27 |
| EPS (Baht) | 0.53 | 0.57 | -0.30 | -0.21 |
| GP Margin (%) | 42.81 | 45.69 | 43.73 | 46.18 |
| NP Margin (%) | 4.50 | 5.05 | -3.93 | -2.73 |
| D/E Ratio (x) | 1.19 | 1.10 | 1.21 | 1.22 |
| ROE (%) | 11.79 | 12.81 | -7.85 | -4.81 |
| ROA (%) | 8.37 | 9.06 | -2.83 | -2.15 |
Zen Group's business plan for 2024 are as follows:
• Restaurant business: Major brands revamping to have a modern style to respond the customer's needs and able to compete in the industry while keeping the quality of food and service according to brand standards to create sales growth. Also, continuously expand new branch to the potential location with worthwhile investment.
• Franchise business: Plan to bring the company's brand to expand more foreign country. For domestical franchise, continue expansion with quick payback model.
• Commercial Retail business: Operate through 2 subsidiaries by increasing sales of raw materials to factories in the food industry and doing OEM business. Expand own fish-filleting plant to support increasing sales orders and customer-bases. Being a supplier of high quality raw materials with reasonable costs to the affiliates.
Zen Group conduct business for sustainability under the concept of "ZEN CARE" to make balance in business value chain according to the 6 UN SDGs goals.
• Participate in waste separation campaign project.
• Participate in the greenhouse gas compensation project by purchasing carbon credits from the Betong Green Power Plant.
• Carry out the FOOD FOR GOOD project to promote good nutrition for Thai children by donating funds for the 2nd year continuously.
• Support the use of cage-free eggs at the Company's branches.
• Support the disabled group by donating money to the Disabled Persons Empowerment Fund through the Jai Dee Farm project.
• Commit to disclose the accurate, complete, timely, transparent, fair and reliable information, both financial and non-financial, through easily accessible channels, relating to the company and its subsidiaries, and strictly comply with relevant laws and regulations.
• Zen Group was established in 1991 and has been growing continuously with the creation of high-quality Japanese cuisine in both taste and experience, ranging from traditional Japanese restaurants, premium Japanese restaurants both yakiniku, sushi to contemporary Japanese café with an increasing number of restaurant outlets across the country under supervision and management of the Company's brands: ZEN, AKA, On the Table, TETSU, and Sushi Cyu and Carnival, and Din's.
• In 2016, Zen Group merged with "Tummour", the original traditional Thai-Isarn food which has been developed and renovated brand to a unique and modern restaurant but still retains authentic Thai flavors. The Thai-Isarn-Vietnamese restaurant under "Lao-Yuan" brand that serve Thai-Indochina food. And "Khiang" brand, a Thai fast-food restaurant serving bold and delicious flavors.
• As of December 31, 2023, the Company's total restaurants reached 341 branches, 182 of which are equity-owned branches, 159 of which are franchised branches.
• In addition, Zen Group also operates a commercial food retail business. The products are seasoning products, frozen seafood products, and food imported from abroad, that are used as cooking raw materials, ready to cook and ready to eat food products
• For the year ended 2023, the Company’s total revenue was THB 3,945Mn, an increase of THB 532Mn or 16% from last year which mainly due to the growth in restaurant business and commercial retail business at 19% and 40%, respectively.
• Total net profit of the Company was THB 158Mn, an increase of THB 4Mn or 2% compared to last year.
- Revenue of restaurant service which is the Company's core business has grown as a result of new branches opening that generate good income. In addition, the LaoYuan rebranding during mid of 2023 draw more customer traffic and income, launching marketing and promotional activities caused an increasing customer coming to visit the Company's restaurants.
- Revenue of commercial retail business has grown significantly due to the seasoning production capacity expansion and chilled-warehouse expansion to support an increasing in sales orders from an expanding customer bases.
- General admin expenses were reduced, resulting from efficient cost control from the use of technology to replace daily routine operations, including restructure internal supporting units to reduce redundant work and unnecessary expenses.
Raw material shortage and fluctuations in raw material prices risk The Company has the procurement plan, raw materials demand estimation, efficient procurement system, assessment risks from shortages or fluctuations in raw material prices and preparation of both short-term and long-term futures contracts included the policy to provide a list of multiple suppliers in order to reduce the risk of purchasing raw materials from a single supplier.
High competition in the same industry risk
The restaurant business is often highly competitive and new entrepreneurs are constantly entering the industry. The company has to adjust marketing strategies and guidelines to be in line with the situation that occurs at each moment to reduce the risks that may occur any time.
• Achieved SET ESG Ratings at AA Level (3rd consecutive year)
• Received an excellent CG score for the 3rd year continuously
• AKA brand got the Thai Best Food Franchise Awards of year 2023
| as of 28/12/23 | ZEN | FOOD | SET |
|---|---|---|---|
| P/E (X) | 15.82 | 30.60 | 18.42 |
| P/BV (X) | 2.04 | 1.54 | 1.36 |
| Dividend yield (%) | 1.74 | 3.37 | 3.32 |
| 28/12/23 | 30/12/22 | 30/12/21 | |
|---|---|---|---|
| Market Cap (MB) | 2,760.00 | 5,190.00 | 3,600.00 |
| Price (B/Share) | 9.20 | 17.30 | 12.00 |
| P/E (X) | 15.82 | 47.83 | - |
| P/BV (X) | 2.04 | 4.24 | 3.24 |
