Message from the Board of Directors

Greetings to all shareholders. With the end of a turbulent 2018 which witnessed a deceleration of national consumption and domestic spending, along with declining performance in international tourism, the beginning of 2019 was deemed to be a hopeful year for many.

The Board of Directors
KARMARTS PUBLIC COMPANY LIMITED

The company held positive expectations in terms of domestic political stability and economic growth as well as strong Asian economic performance spear-headed by the Republic of China. To that end, KARMART was set out to achieve significant growth and soar to greater heights with our optimal and diversified business strategies planned for the year.

In terms of local political environment, however, the election held in 2019 impacted domestic demand in multiple ways through the prolonged delay in the formation of a new Parliament, during which implementation of government policies were dealt with challenges and domestic consumption remained stagnant due to ceaseless uncertainty and decreasing consumer confidence.

The company concluded the fiscal year of 2019 with THB 1,526.03 million Operating Revenue, reflecting an overall growth of 0.19% from 2018, and THB 261.24 million Net Profit which represents 12.10% growth compared to 2018, excluding the profit consolidated from associated entity which total THB 127.18 million from sales of properties. The total dividend paid out/declared for the year was THB 0.28 per share, while Return-on-Equity ratio stood at 26.16% and Return-on-Asset ratio recorded 16.59%, indicating a desirable financial health and making KARMART a preferential stock above and beyond many others.

Towards the end of 2019, news of Covid-19 hit the world stage and many expected that impacts which could be potentially sustained by China, the new economic giant, would result in adverse effects across Asia and probably the world. Holding the same view, KARMART quickly applied changes to sourcing and procurement plans to diversify supply chain risks and re-strategized directives for 2020. Operational changes were also implemented to minimize risks to employees, the company’s most valuable assets, including deferment and/or cancellation of unnecessary travels and commencement of daily health checks. Moving forward, the company has firmed up decisions on investment in new packaging facility and strategic engagement of warehousing and logistics solutions provider, to name a few, as part of our business continuity plans rolled out in response to the existing macro environment.

On behalf of the Board of Directors, we like to assure all shareholders that KARMART is prepared and well-equipped with resources and expertise to brave through a stormy 2020 under the leadership of our management team. We are also thankful for and honored to have all employees’, business partners’ and shareholders’ continuous faith in us in the coming year and beyond. As the saying goes, “the most effective way to do it, is to do it”, and we shall!