In the midst of an economic downturn, it is essential for most companies to revise their strategic plans and seize the opportunities in mergers and acquisitions (M&A) as during this period of time, they could be offered a deal more cheaply than is usual or expected. For example in the case of Do Day Dream Public Company Limited (DDD) that just acquired 9% stake in Nova Organic Company Limited (Nova) at a bargain price of 520 million baht.
As at the end of first half of this year, DDD’s cash flow equivalents to 1,000 million baht. To not waste any opportunities, spending some 520 million baht is a good idea for growing and expanding the business.
Nova was founded in 2013 to produce and distribute health supplements under the trademarks “Donutt” and “Livnest”, best selling products in Watson guaranteed by the Watson Best Selling Product Award in 2015.
Nova was also awarded the Best Beauty Products category from 1577 Home shopping, and 7 Innovation 2015 Best Innovator Award from CP ALL.
Meanwhile, the manufacturing plant has obtained a certification for good manufacturing methods, GMP (Good Manufacturing Practice) from the Food and Drug Administration. Ministry of Public Health, as well as a certification for HALAL by the Central Islamic Committee of Thailand.
For the last 2 years, Nova has been recording a continued rising in profit. The revenue in 2018 and 2019 was 354 million baht and 483 million baht, respectively. While the profit in 2018 was 17 million baht and skyrocketed to 329 million baht in 2019.
With the health and wellness trend nowadays, it is expected that health supplements of Nova would strengthen DDD’s growth significantly.
Moreover, DDD has previously acquired OXE’CURE brand in order to expand its business to cosmeceutical market, and Kuron Corporation Limited, which distributes the brand such as Lesasha and Sparkle, to penetrate the beauty products and health and beauty cares market.
For the six months ended, DDD recorded net profit of 37 million baht with a total net profit of 562 million baht, therefore it is expected that this year would be a great year for DDD.