Message from the Board of Directors

Overseas expansion continued to deliver good results for the fourth consecutive year, evident from a near two-fold growth in export value and significant increase in sales revenue generated via Modern Trade channel.

Mr.Wiwat Theekhakhirikul
Chairman, Director and Chief Executive Officer

In 2016, the people of Thailand suffered the loss of their greatest and longest-reigning monarch, King Bhumibol Adulyadej, on Thursday Oct 13. As the world grieved for the passing of the ninth monarch of the Chakri dynasty, or King Rama IX, after 70 long years on the throne, Karmart shall commit to carry on the teachings of the great King, follow his principles and continue to do good for the society along with millions of citizens who were blessed to live under his reign.

Domestically, apart from the economic slowdown which followed the passing of the nation's leader, unstable political outlook which has affected the economy as a whole for the past decade and the extermination of "Zero Dollar Tour" also directly impacted the Thai economy in the past year. Multiple companies across a wide spectrum of industries slowed down expansion plans as a safe move despite strong growth which could be observed in the beauty sector. Consequently, the overall downturn in Q4/2016 influenced the company's performance on a year-on-year basis and hindered the achievement of 20.58% of growth in sale revenue, or Baht 248.03 million, which constitutes 10% less the initial target laid out in the beginning of the fiscal period, primarily due to lowered consumer confidence index and reduction in tourism activities.

Overseas expansion continued to deliver good results for the fourth consecutive year, evident from a near two-fold growth in export value and significant increase in sales revenue generated via Modern Trade channel. To provide a strong boost for Asia-wide exposure, the company organised KARMART Asian Beauty Blogger Contest (ABBC) Season 1 in Q3/2016. The event served as an international platform for young blogging talents across 8 Asian countries to showcase their aptitudes and this, in return, successfully increased brand awareness and recognition for the company outside Thailand.

Acting on our key focus on product quality, Karmart established a new manufacturing facility in 2016 to further enhance quality control and support future market expansion plans which are expected to be completed by mid 2017. Complementing the expansion of manufacturing capabilities are our continued efforts in sourcing for best quality materials from all over the world so we may continue to provide highest quality products at the most reasonable prices for our consumers.

Moving towards the company's goal of further strengthening our position as a market leader in Asia and establishing our brands on an international scale over the next decade, we remain committed to the values we seek to deliver to the world stage. On behalf of Karmarts Public Company Limited, the Board of Directors would like to express our sincere appreciation to our business partners, stakeholders, Karmart employees and communities at large for their continued support towards the company over the past three decades and beyond. As we march into 2017, we are confident that as a whole, we shall hand in hand work towards our vision to become "One of the leading branded beauty providers for everyone worldwide".