In 2018, the overall picture of the economy indicated that the Country’s economy had not been fully recovered. This also included the economy of the South, according to the huge plunge in the price of major economic crops of the South namely oil palm, rubber, coconut and white shrimp, all of which had been experiencing extremely and continuously low price. Moreover, tourism industry, one of the main driving forces of economic growth in southern Thailand, had also been adversely affected. A large number of Chinese tourists, the most popular nationality to visit the southern part of Thailand, had dropped due to the weakening of Yuan currency as well as the tragedy involving capsized boats in the sea of Phuket where over 50 lives were taken, mostly of Chinese national. The latter incident produced an impact upon tourism industry and connected industries such as hotel and restaurant industries and jewelry stores. In addition, the problem with illegal fishing, where the government had rolled out stringent measures to tackle the problem, had resulted in shutdowns of a large number of fishing operations. All of which had prevented the economy of the South to recover. The residents of southern Thailand had lost their income for spending, resulting in continuous decrease in the volume of retail sales. This had, inevitably, produced an impact upon the sales of the Company’s products.
The operating results of the Company in 2018 in comparison to the year 2017 had shown the total sales of all products of 52.7 million unit cases, a slight increase of 1.77%. As such, total sales did not meet the set target of 55.6 million unit cases or a 5% increase from the previous year. The Company’s revenue from sales of Baht 5,704.0 million showed a slight increase of 0.58% from the previous year, which was also below target. The reason was because consumers’ purchasing power had dropped as per the reasons cited above. Nevertheless, the Company had managed to maintain its status as the leader of sparkling beverage industry of the South, with the average market share of 83.8% (Source: AC Nielsen) The Company’s net profit from operation was Baht 249.07 million, a 12.09% drop compared to the operating results of the year 2017.
The Company’s net profit as per the Consolidated Financial Statement of 2018 was Baht 249.07 million, equivalent to earnings per share of Baht 1.25, from paid up shares with the par value of
Baht 1.00. Therefore, the Board of Directors had proposed for allocation of profits in the form of dividend payout to the shareholders of the Company at the rate of Baht 0.80 per share, totaling to Baht 159,374,400 or 64% of net profits, which was in accordance with the Dividend Payment Policy of the Company. The Company had already made interim dividend payment to the shareholders at Baht 0.38 per share on 21st September 2018, so the additional dividend remained to be paid out shall be at the rate of Baht 0.42. The dividend payment shall be made on 21st May 2019.
On the social and environmental responsibility part: The Board of Directors has a policy to operate its business by recognizing the importance of social responsibility and determination to reduce environmental impact as a result of business growth and expansion; and also to ensure good operating results. In applying the policy established by the Company, it has been using electricity produced by Solar Rooftop, which is considered clean and pure energy, for the production process. Moreover, the Company has reduced the utilization of fossil fuel, and instead, it has adopted the use of electrical energy and LPG as fuel for forklifts; and NGV in place of petroleum for transportation trucks used for distribution of products in the south of Thailand.
The Company also helps to push towards sustainable development in handling the climate change situation, in order to achieve the objective set by the United Nations, via the Carbon Footprint Project of the Company and its products. This project has been established in order to help reducing the global warming effect resulting from the release of greenhouse gases into the atmospheric layers; and to manage and administer the water resources, the main raw material used in the Company’s production process, has also been entered into the Water Footprint Project. This is for the purpose of the calculation of the quantity of ground water needed for the entire life cycle of the products; and safely returning water to the community and the nature under the “RAKNAM” (Love Water) Project, by returning in the amount greater than the amount of water utilized for the production process.
Following the determination by the Company on the development of Environmental, Social and Governance (ESG) aspects in all dimensions and on a continuous basis, the Company had been accepted for evaluation on sustainable investment as per the format and requirements set by the Stock Exchange of Thailand in the year 2018. As a result, the Stock Exchange of Thailand (SET) had announced that the Company was selected as a listed Company with sustainable business; and 1 of the 79 listed Companies on the list of Thailand Sustainability Investment of the year 2018.
On the Anti-Corruption Policy part: In 2018, the Company’s membership period of the Thai Private Sector Collective Action Against Corruption (CAC) had expired and it was time for renewal. The Company had arranged for and submitted the self-evaluation form in regards to the anti-corruption measures in order to propose for renewal of the membership certificate. As a result, the Collective Action Certification Committee had passed a resolution on 5th November 2018 to certify the Company and renew its membership of the Thai Private Sector Collective Action Against Corruption (CAC). The certificate shall last 3 years from the date that the Committee passed the resolution for approval of certification.
Future Outlook and Trend: It has been forecasted that the economy of the South is likely to remain at a similar condition to that of the year 2018 since the price of major economic crops, the main income for the farmers of the South, shall continue to dwindle, even with a support measure already issued by the government. This shall, in turn, present an adverse impact upon retail sales of the Company’s products, since the residents of the South will be short of income, and hence, less able to spend. Election is now the only hope for Thai citizens, with the hope that democracy will help to boost the economy. Despite all this, the scorching heat of the summer shall certainly create a positive effect for the Company’s total sales of the products. The Company has set a target for sales growth at approximately 6% from the year 2018. In addition, the Company shall try to control its expenses on a continuous basis, which means that the operating results of the year 2019 shall most likely be better than the ones in 2018.
The Board of Directors would like to thank all of the shareholders and stakeholders of all parties for the trust and support in Haad Thip’s operations all along. Please rest assured that the Board of Directors, Management, employees and staff of Haad Thip Public Company Limited are determined and committed to the development and improvement of “Haad Thip,” in order to remain a successful business in a sustainable manner.