Consumer Spending Boosts Food And Beverage Companies On Forbes Asia ‘Best Under A Billion’ List

Forbes Asia announced its 2024 Best Under A Billion list, which recognizes 200 top-performing small and midsized listed companies in the Asia-Pacific region. The full list can be found here and in the August issue of Forbes Asia.

The annual Best Under A Billion list spotlights 200 leading public-listed companies in the Asia-Pacific region with annual sales above US$10 million and below $1 billion. From a universe of over 20,000 listed companies, candidates were selected – not ranked – based on a composite score that incorporated their overall track record in measures such as debt, sales and earnings-per-share growth over both the most recent fiscal one- and three-year periods, and the strongest one- and five-year average returns on equity.

While geopolitical and inflationary headwinds sapped momentum from some Asia-Pacific economies, strong domestic demand supported by an uptick in infrastructure spending and global trade powered the region’s overall growth in 2023. A flourishing middle class that is willing to spend on eating out and the steady return of tourists put 21 food and beverage companies on this year’s list, more than double from last year.

The rebound in consumer spending also contributed to a renewed glow in the beauty business, with nine related companies making the cut. Meanwhile, easing supply constraints saw the number of semiconductor firms, last year’s standout sector, fall to eight from 14.

Among the newcomers on the list is Delfi, a Singapore-based confectionery-maker, which saw a 13% increase in revenue last year to $538 million. With confectionery brands such as Ceres and Goya sold in over 17 countries, the company’s biggest market is Indonesia, which contributed nearly two-thirds to sales, or $353 million.

Newcomer Indian ice cream maker Vadilal Industries, which was founded more than a century ago in 1907, saw net profit jump 52% to 1.5 billion rupees ($18 million) on a 7% rise in revenue to 11.4 billion rupees. Based in Ahmedabad, the company plans to ramp up production of its frozen treats, shifting one of its two ice cream factories to a new location with more capacity.

Bottled water sales have surged in Indonesia over the past two decades, a consequence of the growing affluence of the nation’s middle class and their concerns over the quality of tap water. Sariguna Primatirta posted revenue of 2.1 trillion rupiah ($137 million) in 2023, a 25% increase from the previous year, while net profit climbed nearly two-thirds to 324 billion rupiah. That double-digit growth landed Sariguna Primatirta a debut spot on this year’s list.

This year’s list includes 54 returnees from the previous year. Among them is beverage company Sappe, which makes its third appearance on the list. The Thai company saw its revenue grow by nearly a third to 6 billion baht ($174 million), with the export market, mainly Asia, contributing over 80% of sales last year. Best known for its fruit juices and coconut jelly drinks, the company is expanding its capacity and expects to increase production by 30% annually from 2024-2025.

Local demand for its spicy and marinated nibbles heated up sales at Changsha, China-based snack maker Yankershop Food, which made the list for the second year. In 2023, revenue grew 42% to 4.1 billion yuan ($576 million). In December, the company invested 350 million yuan for a 3.3% stake in Chinese snack shop giant Mingming Henmang (formerly Lingshi Henmang).

The Best Under A Billion list, which started in 2002, features some of Asia’s biggest success stories. Notable alumni include tech companies Baidu, Alibaba and Tencent from China; India’s digital services and consulting company Infosys and biopharmaceutical firm Biocon; popular fast-food chain Jollibee from the Philippines and Malaysian budget carrier AirAsia.

For the full methodology and more information on the list, please visit www.forbes.com/bub.

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