MESSAGE FROM THE CHAIRMAN AND GROUP CHIEF EXECUTIVE OFFICER
The political crisis which had continued from the last quarter of 2013 has led Thailand’s
economy to grow at 0.7% in 2014, in particular the households, business and government
sectors were wary of spending, both for consumption and investment. The tourism sector
was also significantly affected. In addition, export sector grew at low rate due to the
slump in prices of agricultural products such as rice, rubber and palm, etc.
MESSAGE FROM THE CHAIRMAN AND GROUP CHIEF EXECUTIVE OFFICER
In 2017, Siam Makro Public Company Limited continues with our commitment to achieve stable and sustainable growth, under good corporate governance, and the pursuit of our vision, well aware of our duty and responsibility for best value creation towards shareholders, stakeholders, customers, business alliances, society and the overall economy of Thailand.
The Company’s policies were crafted with fiduciary care while clear strategies and efficient implementation plans are in place, coupled with the dedication of the Company’s management and staff to consistently and strictly perform with integrity, in compliance with the law, the Company’s rules and regulations, and Board’s and Shareholder’s resolutions. These are major contributors and key drivers for our business growth as well as the realization of the targeted overseas expansion which will become strong foundation for our future success.
Amidst the slow growth of Thai economy, from both external and internal factors, the Company managed to achieve satisfactory 2017 performance, resulting from the fact that the Company has adapted fast to cope with rapid changes and developed the organization towards the 4.0 world which brings new challenges and opportunities. The growth in the food service segment also contributed to the total 2017 Revenues of Baht 186,754 million, 8.1% increase, and net profit of Baht 6,178 million, 14.1% increase over 2016.
Throughout the 28 years of our success which focuses on customer centricity, the Compapny has continuous progress and development, from being the only cash and carry wholesale distributor in Thailand, offering a full assortments with good service and low price to food and non - food retailers nationwide, which reinforces our mission of being retailers’ alliance. With intense competition, the Company has differentiated and expanded into the food service business, catering to the needs of hotels, restaurants and catering operators, namely HoReCa customers. Multi - format developments also made Makro business unique in the outreach and response to target customers’ specific needs, in different location. The “Makro Food shop” and “Makro Foodservice” have been designed to have 1,000 square meters sales area to facilitate customers’ convenience in tourist or highly congested business areas. The Company opened 8 new stores in 2017 and now has total 123 stores nationwide.
After thorough feasibility studies for overseas expansion, the Company has officially launched the first Makro store in Phnom Penh, Cambodia, which was well-received and welcome by local retailers and food service professional customers, including the Cambodian people. This reflects the understanding of the general public that Makro is their trusted business partner who will take part in the development of the quality of life, the economics of the community and the overall economy of Cambodia, which shall be an important ground for further expansion in Cambodia.
In the meantime, the Company also focuses on the international expansion of food service business stream in order to fulfill the vision “to be number one food solution provider to professional customers”. To this regard, Siam Food Services Limited has acquired leading overseas food service companies from Indoguna Group in parallel with the establishment of Food Service APME which would drive the food service business of the Makro Group in 6 countries, namely, Thailand, Vietnam, Hong Kong, Singapore, United Arab Emirates and Cambodia. Thus, enhancing Makro’s competitive advantage of being a prominent one-stop food solution provider, who could cater to all HoReCa customers’ needs and to support the future move to be a leader in the international arena, especially in Asia Pacific and the Middle East.
Online to Offline system development, a solid online presence to keep abreast with the world’s business trend, has been another challenge. The optimization of Makro’s sales platform to enable the online sales channel, supporting business to business (B2B) marketing, and the preparation of delivery service management and e-payment would provide convenience and alternatives to digital age entrepreneurs, in addition to the in-store shopping. Moreover, investing in Big Data Analytics to enhance the benefits from our database and to be an enabler for direct digital marketing would better serve individual professional customers in terms of time and cost savings and speed-up sales increases. This success would contribute to the long-term “Makro” brand loyalty.
With awareness of the impact from technology disruptions, the Company carried out a study and subsequently worked out a “Roadmap of Makro 4.0” under a strategic framework designed to achieve the goal for “Enhancing People’s Lives”. Key drivers would be innovation and new business model which will address the needs of new-generation retailers and HoReCa professionals. In parallel, recruitment and development of new generation of the Company personnel to be future leaders in the new developments and upcoming changes are challenging missions. However, “VICTORY – 7 Makro Values” and the strong company culture would be the best enablers for integration of multi-generation workforce’s similarities and differences and the shape up of Makro 4.0 professional profile.
The Company continues to develop farmers and business alliances on food safety and delivery of environmental friendly products, to secure mutual and sustainable future growth. In the retailers’ segment, the Company equipped the traditional retailers, community stores and Pracharath Network with knowledge, know-how, innovation and management techniques, while HoReCa professionals were provided with exposures to creativity and techniques which they could apply for their business. All in all, the purpose was to sustain and grow their business under any circumstance.
On behalf of Siam Makro Public Company Limited, the Board of Directors would like to extend our sincere gratitude to our member customers for choosing Makro as your trusted partner for the past 28 years and to our business partners, shareholders, government agencies and financial institutions for your continued support. Last but not least, we would like to thank the management and staff for the hard work and contribution to the Company. We are committed to efficiently conduct our business with integrity and transparency, in line with the principles of good corporate governance, and a fair long-term value creation for our stakeholders, together with social and environmental responsibilities and to secure the sustainable economic growth and social development of Thailand.