Page 179 - Annual Report Design 2017

Message From the Chairman
To our shareholders :
In the year 2017, the Gross Domestic Product (GDP) in Thailand was 3.9%, increasing from the year 2016 which was 3.3%. For the year 2018, the estimated GDP is 3.6- 4.6% which shows that Thailand economy has a good sign of recovery. But for textile industry, we estimate that the situation is still not recovered. The company still suffers from slowing down of Thailand economy. Moreover, there is a severe price competition in oversea market from products of India and China.
Sales amount in the year 2017 as at March 2018 was 1,180 million Baht with the profit after tax amount 20 million Baht. When comparing with the year 2016 which sales amount was 1,087 million Baht and the profit after tax was 5 million Baht, the profit in this period increased than last period. Sales amount in the year 2015 was 1,153 million Baht and the profit after tax was 28 million Baht. The profit after tax in this period almost recovered to the level of in the year 2015.
In this period, company has been continuously trying expense reduction, cost down by improving production efficiency, cash flow increasing by reducing machine in- vestment. Especially, domestic sales has been expanded by strengthening the relationship with important customers in Thai domestic market, low profitability items by Baht gaining against USD were recovered by increasing sales price in export market. On the other hand, relationship of trust with our important customers has been established by sever quality control and delivery management. As a result, sales amount and the profit after tax are successfully expanded in comparison with last period.
Company has been facing with tough economic situation since in the past because of Thai economic continuous slowdown and Baht gaining against USD and economic recession in export market. Economic recovery can’t be forecasted in the near future. For the countermeasures to these economic situations, structural reform in our company should be done. Sales policy in the structural reform is sales policy change in woven fabrics business and sales expansion of Knit fabrics business. In woven fabrics business, export business should be reducing because of no sign of recovery by Baht gaining against USD and bad market situations, Thai business should be expanded in office uniform and company uniform which company has already advantage. In Knit fabrics business, export to Japan is planned to be expanded. Manufacturing policy in the structural reform, production efficiency improvement by analyzing variable cost, promotion of reform of fixed cost structure, minimization of production losses are main items. Company has been forecasting that it is possible for us to maintain profit by the combination with this sales policy and manufacturing policy even though in such severe economic situations. Company has been already starting this structural reform in this period and it partially resulted in profit in this period. Promotion of this structural reform will be done continuously to the next step year by year. Your continuous support will be greatly appreciated.
(Mr. Norikazu Masui) Chairman
THAI TORAY TEXTILE MILLS PUBLIC COMPANY LIMITED
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