Dear Shareholders,
I am especially pleased to inform you that 2009 has been a significant year in the development of our Company. As many of you will know, we listed on the Singapore Exchange on May 30, 2006.
The Board and I felt that a listing would drive the Company towards greater professionalism and efficiency over time, due to the disciplines required to meet the expectations of our shareholders and the market. Since listing, ThaiBev has changed in many ways, not least in terms of corporate governance, transparency and accountability. These important goals not only led to the investment community choosing ThaiBev as the recipient of several investor relations awards over the years, but transparency and management awards too. I was also pleased to note that our credit rating agencies, Moody’s and Standard and Poor’s maintained our ratings, thus helping to maintain a low cost of debt, our potential to obtain financial resources for the business expansion on regional level and our readiness to compete in domestic and international markets. In summary, these are all indicators that our decision to list was the right one as it has pushed our management into going the extra mile for our stakeholders in general.
Many of you will be interested to know that there was a prudent rationale as to why the Board and I have been devoted to bringing in new and experienced management with different ideas from our own. For several years, we have been aware that we needed to look anew at how we structure and run our businesses. My concern has always been how to develop the profitability of our beer business. The young professionals that we recruited to help drive and manage change at the Company informed the Board that this was not an easy fix and would require a major restructuring to our supply chain system, to reach even the most remote retail outlets in the country. After detailed consultation, the Board felt that the long-term benefits would outweigh the short-term pain required by the plan.
|
Not only have we ended the year with profits up 0.8% on 2008, but we have put our beer business firmly on the road to sustainable profitability in the future. I hope you will join me in following the beer story closely next year.
The year has also been one of uncertainty on the macroeconomic level. While it appears that the news from America improves now and again, some local events continue to make the future very unpredictable for Thailand. The alcoholic beverage industry has had to bear some of the burden for supporting Thailand’s economic recovery through our tax contribution and the significant rise in excise taxes on beer in May 2009 came at a bad time for beer companies. However, being the only fully-integrated beverage company in Thailand, with a complete portfolio of beer, spirits and non alcohol beverages, I believe we were relatively less affected.
The relationship between ThaiBev and the community, besides our funding of important government projects through our tax contribution, has always been one of mutual interest. Wastewater treatment at both breweries and distilleries at ThaiBev are usually seen as an integral part of the relationship between industry and the local community. Our facilities are manned by staff that lives in the community and therefore whatever affect the community affects us.
ThaiBev recycles bottles to the extent possible as this not only helps the environment but saves on the cost of producing new bottles. Distilleries and breweries also create biogas from liquid waste. The biogas is 60% methane and provides the energy required to heat our boilers. At one ThaiBev brewery about 8,000 cubic metres of biogas can substitute for about 4,000 litres of heavy fuel, so we also contribute to the country’s balance of payments by helping to lower the amount of imported fuel for our factories.
Finally, I would like to thank our management for doing a good job during a very difficult economic period in 2009 and trust that the new systems they have been implementing will bear fruit for the future growth of our Company.
|
|
| |
Charoen Sirivadhanabhakdi
Chairman of the Board | | |
