Extracted from Annual Report 2011
Dear Shareholders,
2011 was a challenging year for ThaiBev in several aspects. The Thai economy grew at a slower pace following the decelerating global economies. In addition, the latter part of 2011, most of Thailand regions including the outlying areas of central business district (CBD) of Bangkok were confronted with its worst floods in 50 years. The flood caused damages and disrupted many businesses' production and distribution capability, resulting in dampened public consumption and private sector investments. Not spared by the floods, ThaiBev were also affected by this natural disaster, especially our production facilities in the central region. Although we managed to protect our distilleries and breweries, production and distribution process to a great extent were hindered. Our Oishi beverages and central kitchen production facilities were severely affected. Nevertheless, with ThaiBev's prudent planning and risk mitigation management on natural disasters, including the insurance policy to hedge such risks, we were entitled to compensation from such damages. We coped and swiftly dealt with the worsening floods to ensure the continuity of production and distribution, especially for drinking water-the essential necessity for flood victims which became scarce as the crisis evolved. Concurrently, ThaiBev proactively provided relief efforts to our flood-affected employees and people living in the hardest hit communities.
Despite macro-economic, geo-political, social and environmental impacts, and other challenges beyond our control, ThaiBev strode ahead steadily with efficient business plans and dedication from our staff. I am proud to report that ThaiBev continues to deliver a resilient financial performance, with satisfactory sales growth, especially from our alcohol beverage portfolio, driven by robust consumption. Emphasis are towards our long established brands like Hong Thong and introduction of various new products in the non-alcohol beverage segment to stay ahead of the changing trends of consumers demand. At the same time, we continue to expand our product consumer base. In late 2011, we launched a quality beer under the brand Chang Export, formulated to win the hearts of drinkers who prefer lower degree alcohol beer, which received encouraging feedbacks. On overseas front, our international business saw continuously satisfactory growth, helping to boost our brand awareness in new markets and diversifying our business geographically.
Strengthening our position in the non-alcohol beverage portfolio is among our key strategies to become one of the leading beverage companies in the region. We have continuously launched new products as an extension to capture different demographics. I am delighted to welcome Serm Suk Public Company Limited, the leading domestic manufacturer and distributor of non-alcohol beverages, to ThaiBev family in 2011. This addition to ThaiBev will enhance our logistics business in respect of distribution capability, especially in the non-alcohol beverage operations.
ThaiBev has declared dividend payments on a continuous basis, since our listing on the Main Board of the Singapore Exchange Securities Trading Limited in 2006. For the 2011 operating results, the Company declared an interim dividend payment of Baht 0.15 per share in September 2011. In addition, the Board of Directors of the Company shall propose to the 2012 Annual General Meeting of Shareholders to approve the payment of dividend of Baht 0.22 per share. In case the proposed dividend payment is approved, the total dividend payment from the 2011 operating results will be totaling Baht 9,290,709,250 or Baht 0.37 per share. This reflects the Company as a stable investment. ThaiBev has been able to pay dividends to shareholders in these times of uncertainty. I believe that ThaiBev will continue to move forward with business and financial stability, even in uncertain times ahead, and the Company will continue to deliver satisfactory performance and returns for shareholders.
I would like to thank our Board of Directors for their support and guidance through the years. ThaiBev has strived to adhere to the highest standards and the best practices of corporate governance and this will continue to be our focus in the coming years. I would also like to thank our management team and staff who have shown dedication and commitment to overcome the challenges we have experienced over the past year. Our people are key drivers of our success and I believe that it is because of their hard work and determination to excel that ThaiBev was able to achieve positive results in 2011 and years to come.
On behalf of the Board of Directors and the Management team of ThaiBev, I would like to convey our thanks for your loyalty and belief in the long-term growth of our Company.
Charoen Sirivadhanabhakdi
Chairman of the Board
