Message from Chairman and CEO

In 2019, the Company’s net profit was Baht 441 million, an increase of 77% from the same period in 2018. Part of this increase was the result of economy of scale, which had led to a decrease in the cost per unit of production. As a result, Gross Profit Margin increased from 33.7% to 38.3% and net profit margin increased from 4.3% to 6.5%.

To Shareholders

In 2019, the overall picture of the economy of the south showed the condition of sluggishness that had continued on from the year 2018. This was the result of continued drop in the price of economic crops, namely oil palm, rubber, coconut all the way to fishery, all of which are the main source of income for the farmers and folks of the South. But since southern Thailand is popular among tourists, both domestic and foreign, tourism industry also plays the main part in driving the economy, and, fortunately, economic growth, for the South. Another fortunate circumstance in 2019 was the scorching hot weather, with no heavy rains like in the past year, which was highly to the advantage of the food and beverage industry. As a result, the Company’s operating results experienced a leap growth, and 2019 was certainly the golden year for HaadThip, with strong and stable growth in sales volume, revenue from sales and net profits.

Operating Results

In 2019, revenue from sales was Baht 6,776 million, the highest ever since the Company was established, and an increase of 19% from the same period of last year. Total sales increased to 64 million unit cases or an increase of 20% from total sales of 53 million unit cases in the same period of 2018. The growth in revenue was the result of the Company’s implementation of revenue growth management (sales price and sales promotion) as well as applying the right marketing campaign to the target group. In addition, such strong revenue growth of the year 2019 was also the result of higher production volume to accommodate for higher purchase order from our domestic business partner.

In 2019, the Company’s net profit was Baht 441 million, an increase of 77% from the same period in 2018. Part of this increase was the result of economy of scale, which had led to a decrease in the cost per unit of production. As a result, Gross Profit Margin increased from 33.7% to 38.3% and net profit margin increased from 4.3% to 6.5%. As a result of the strong operating results and solid financial status, the Interest bearing Debt / Equity Ratio was merely 0.22 times; and Interest Coverage Ratio was over 21 times. ROE was 16% which was an increase from 9% in the same period of 2018.

From the operating results of the year 2019 with net profit of Baht 441 million or Baht 2.21 per share, the Board of Directors had considered and approved Interim Dividend Payment to the shareholders of the Company at the rate of Baht 0.98 (Ninety-eight Satang) per share. This came as a replacement of the annual dividend payout to be proposed to the Annual General Shareholders’ Meeting for approval. However, this Interim Dividend Payment shall serve to reduce any impact that may occur to the shareholders of the Company as a result of postponement of the Shareholders’ Meeting until further notice. The postponement was a result of the ongoing pandemic of coronavirus disease 2019 or COVID-19 in Thailand, with a number of infected individuals still rising continuously and spreading more widely. The Interim Dividend Payment at the rate of Baht 0.98 per share this time, when adding to the Interim Dividend Payment for the first 6 months of the year 2019, according to the resolution already passed by the Board of Directors on 20th August 2019, at the rate of Baht 0.78 per share, the total dividend payment would then add up to Baht 1.76 per share, accounting for 79.6% of net profit, and shall serve as dividend payment from the operating results of the entire year of 2019. The Board of Directors shall not propose for any more dividend payment for the year 2019, since the previously mentioned dividend payments are in accordance with the Dividend Payment Policy of the Company.

Social and Environmental Responsibility

The Board of Directors of HaadThip Public Company Limited has a policy to operate the Company’s business with complete awareness of its responsibility to the society and determination to reduce the impact upon the environment as a result of business growth and expansion, while also committed to generating a sound operating result. The Company has proceeded with activities to help reducing the impact on the environment via various projects. For example, the Company and Coca-Cola (Thailand) Foundation have provided support for the organization of “Rak Nam Project” in Surat Thani and Phatthalung provinces to construct a check dam as well as hill irrigation system to conserve water for all households to have drinking water and water for household use; to open the waterway and get rid of weeds in the canals; to promote community forestry by arranging for an activity to plant vetiver grass and indigenous plants and trees. An arrangement has also been made for a neighborhood watch, with volunteers to take care and keep a watchful eye on the river basin, from upstream to downstream, which has gradually led to the creation of the Conservation and Management of Water Resource Network within the community that is a very strong and solid network.

Moreover, the Company has also proceeded with Carbon Footprint Project by implementing various measures in making an effort to mitigate utilization of electricity and fuel. The Company was able to reduce emission of greenhouse gases by 8% of the carbon footprint for organization, and more than 2% of the carbon footprint for the product, as certified by Thailand Greenhouse Gas Management Organization (Public Organization).

Following the Company’s determination to develop in all dimensions of the Environmental, Social and Governance (ESG) factors on a continuous basis, assessment has been made on the Company’s corporate sustainability level, according to the format and criterion set by the Stock Exchange of Thailand. As a result, the Company has been considered a publicly listed company with sustainable business. It was also 1 out of 98 listed companies on the Thailand Sustainability Investment list of the year 2019 and was awarded with the Rising Star Sustainability Excellence Awards of the year 2019.

In addition, Thaipat Institute has announced that HaadThip Public Company Limited is on the list of Sustainable Investment ESG100 of the year 2019 in the category of Agro & Food Industry. The Company has been listed on ESG100 for the second time in 2019, after the first in 2015.

Anti-Corruption Policy

The Company has elevated the status of its membership of the CAC by joining the CAC SME Certification Program to expand the transparent and corruption-free network by making its trade partners from the SME group of companies realized how important it was to create a supply chain and collectively declare an intent to join the network of transparency. As a result, a total of 13 trade partners of the Company had declared an intent to join the network of transparency, all of which were SMEs from purchasing and procurement department, raw material and strategic procurement department and operation department. This was an important step towards the creation of a strong network, for the purpose of corruption prevention through to the future. The Company was also granted “CAC Change Agent Award for the year 2019” and honored during the 10th Annual CAC Nation Conference Day event held under the title “Innovations in the Fight against Corruption”. HaadThip was 1 out of 5 companies honored with an award this time.

Future Trend

For the operation plan for the year 2020, the Company’s goal is for the business to continuously grow, with the target for sales growth at approximately 5% from the year 2019. However, nobody could have predicted in advance such crisis as this horrific pandemic of coronavirus disease 2019 or COVID-19, which has substantially disrupted the economy of the entire world. This certainly is a risk factor that presents an impact upon the set target and goal of the Company. However, the food & beverage industry is usually less volatile than other industries, when it comes to demand for the products. For medium term, the main factor that the Company must monitor closely is how long this pandemic will go on, and how the government policy will impact the overall economy of the nation and the South, especially in the areas known as tourist destination. It certainly will present an impact upon the Company’s operating results without a doubt, but the Company is confident that our business is resilient enough, and we can keep up with business operations even if a recession will prolong for a lengthy period of time. As of now, the Company has already proceeded with the plan to handle and be adaptive to the situation of COVID-19 pandemic as follows:

  1. To make adjustment to the channels of distribution as well as packaging, to accommodate the new way of consumer behavior, which is staying home, as required by the government;
  2. To monitor and control the Company’s operating expense in a stricter manner;
  3. To proceed with the plan to reduce the cost of sales; and
  4. To prioritize the importance of investment activities and to place top priority on the investment of the type of work deemed necessary for generating short-term revenue for this year

By making the above-mentioned preparations, the Company believes that we will soon pass through this crisis, and when we get back on our normal track of business operation, we will come back even stronger.

The Board of Directors states that the shareholders and all parties of stakeholders can rest assure that the Management of the Company will put wholehearted effort in ensuring that our organization will pass through this crisis. The Board of Directors also would like to thank the shareholders and stakeholders for your trust and support in HaadThip’s business operation all these times, and would like to reassure that the Board of Directors, the Management and all of the staff/employees of HaadThip PCL will cooperatively and wholeheartedly devote ourselves at our utmost best to the development and improvement of “HaadThip” for great success in a sustainable manner.


Gen. Charan Kullavanijaya


Maj. Gen. Patchara Rattakul

Chief Executive Officer