The year 2018 was very challenging for the Company as our business had been affected by several negative factors continuously. The price for major crops including para rubber, palm oil and sugarcane had been seriously low, which caused farmers’ purchasing power weakened further. Meanwhile, the raw material price had increased a lot and farmers could not afford to buy high quality fertilizer.
Under such a tough situation, the Company has adjusted its operational strategy to make up the missing demand. Firstly, the Company has developed new fertilizer formulas targeting fruit farmers as fruit prices tend to remain high. Secondly, the Company has put more resources on export markets, especially Myanmar market which has big demand and potentiality of further business growth among South East Asian countries. Last year, TCCC Myanmar Limited, our wholly owned subsidiary, started commercial operation to catch the big demand for sure. It operates a fertilizer packing facility located in Thilawa Special Economic Zone to serve customers in Myanmar. In addition, the Company has also expanded its business to other neighboring countries, for instance, Cambodia and Laos. Thirdly, the Company has begun to adjust its business operation to be aligned with the new vision, “The first-choice of growers” with three missions which are to create value, to develop our people and to care for society. The aforesaid development of new fertilizer formulas is the result of alignment of business operation and the new vision. Furthermore, the Company has arranged the activity to motivate the employees to understand the new vision, and be able to work together in the same direction. Then, the company will strengthen the corporate culture.
Although the Company struggled to overcome the situation by implementing such strategy, the sales decreased to Baht 10,322 Million or by 11% and the Profit Attributable to Owners of parent decreased to Baht 1,331 Million or by 31%, compared with year 2017.
In the year 2019, business situation would remain tough, considering the agricultural situation. However, the Company strives to perform business operation at its best endeavor according to direction of the new vision for good performance. The Company urges the shareholders and other stakeholders to support the Company in order for the Company to actually become the first-choice of growers as its goal.