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Economic: Creating long term value
Economic Performance
In 2014, ThaiBev as Thailand’s world-class total beverage producer and distributor, declared our intention and determination to strengthen our business competitiveness through our Vision 2020 strategy.
ThaiBev is determined to grow our business in a stable and sustainable manner, maintain the quality of our products, and share the economic value we create with our stakeholders.
Over the past period, ThaiBev has undertaken various activities to strengthen our business operations throughout our value chain. For the year 2015, total sales revenue of the Company was Baht 172,049 million, an increase of 6.2 percent or Baht 10,009 million, from Baht 162,040 million of last year. This was due to an increase in sales revenue of spirits business by 1.3 percent, beer business by 22.5 percent and non-alcoholic beverages business by 4.5 percent although there was a decrease in sales revenue from food business by 0.4 percent. We further plan to simultaneously increase our revenues from non-alcoholic beverages, and revenues from overseas sales, to over 50 percent of our total revenues by 2020 respectively.
We have also shared economic value with our local and international suppliers through effective procurement totaling over Baht 38,000 million per year, and with local communities through the hiring of local workers. Our strong branding and fully integrated and efficient distribution system are additional factors that support ThaiBev’s sustainable growth.
ThaiBev supports local employment in every area where our production facilities are located, ranging from beverage and food facilities, to offices and distribution centers. It is our intention to share income with the surrounding communities and improve their quality of life. This includes our employees, employed by both ThaiBev and our subsidiaries in Thailand, who in 2015 received wages of over Baht 12,653 million.
ThaiBev has also reduced the disposal costs of packaging waste. In 2015, we purchased used bottles from more than 600 small suppliers, thereby distributing income and generating employment locally. Through managing by-products from manufacturing processes, we are also educating the surrounding communities to convert by-products into valuable items for generation of their own income.
In 2015, corporate income tax was Baht 4,508 million. We also have a dividend policy of not less than 50 percent of net profits after the deduction of all specified reserve, subject to the investment plan as the Board of Directors deems appropriate. For the financial year ended 31 December 2015, the Board of Directors has recommended total dividend of Baht 15,317 million.
ThaiBev has also continuously supported the development of communities and society, education, public health, arts and culture, and sports. In 2015, we provided funding support of more than Baht 440 million for such development projects.
As of date 31 december 2015
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