The company expects to enhance the recruitment of management-level personnel in the long run through this change. As a transition, however, the shortened work-week has resulted in more downtime relating to sales activity and inevitably led to the inadequate fulfilment of targeted sales for the year.
Chairman, Director and Chief Executive Officer
Greetings to all shareholders. 2018 marked another year associated with continued deceleration of national consumption of consumer products and decline in prices of agricultural products such as rice, palm products, rubber, pineapple etc. The number of international tourists, especially those from China, also dropped significantly. Collectively, adverse aspects from international tourism and fall in domestic demand affected the overall economic growth of the country. Despite the suboptimal macro-economic factors, Karmart rode against the waves and successfully achieved relatively satisfactory turnover and net profits by adhering to our organisational philosophy and with our vision and mission in mind.
The past year is also the first year starting from which Karmart implemented a five-day work week and reduced the working hours and days to better cater to work-life balance of current staff force and meet existing demands from labour markets. The company expects to enhance the recruitment of management-level personnel in the long run through this change. As a transition, however, the shortened work-week has resulted in more downtime relating to sales activity and inevitably led to the inadequate fulfilment of targeted sales for the year.
The company had the opportunity to sell off assets by investing in a subsidiary company (The Iconic Property Company Limited) and sold approximately 5 Rais at the price of 750 million baht, a transaction through which the company received approximately 130 million baht as earnings after tax and the total net profit totaled 361 million baht. The total revenue of the year 2018 was 1,523 million baht.
Karmart still maintains a fair and constant dividend policy for the shareholders at the rate of 7 cents (satang) per share and the dividends are derived from cash flows from operation. The debt and equity ratio stands at 0.566 times, presenting a superior competitive edge as compared to what the market currently offers. Besides, the company also invested in the construction of one more headquarter and warehouse on an area of approximately 4750 square meters, a move which reinforces our continuous emphasis on production, along with investments in machines to support the plan of increasing production capacity to better manage supply chain. Expansion plans regarding packaging production and facility to reduce costs and enhance competitive advantages in the market are also in the pipeline.
On behalf of the Board of Directors, we are certain that the company will grow, achieve better accomplishments, create more sales and profits, maintain dividends and sustain low debt and equity ratio in the next year and beyond. We are honored to have been entrusted by and thankful to all employees, business partners and shareholders who placed faith in us and supported us throughout the years. In 2019, we will continue to place high emphasis on our vision to become “One of the leading branded beauty providers for everyone worldwide” and lead our stakeholders to greater heights.