Last year, the country’s economy was in the most critical state it had experienced in a decade. Key factors contributing to this situation included the global economic downturn and major conflicts in two regions. The lack of government stability led to a loss of consumer confidence, which in turn caused a decline in purchasing power. Delays in budget approval and disbursement significantly slowed government investment, resulting in a nationwide decrease in consumption. The sectors most impacted were the automotive and real estate industries. Car sales in year 2024 fell by 40-45% compared to the previous year. In the real estate sector, many entrepreneurs, particularly those running medium and small-sized businesses, had to either slow down or halt the construction of new projects altogether. Additionally, at the end of the year, an unprecedented severe flood affected many northern and central provinces, such as Chiang Rai and Chiang Mai, causing substantial damage and further disrupting consumption. These factors directly impacted the company’s business. Not only did purchasing power decline, but competition also intensified significantly. Competitors began implementing price reductions to capture market share.
This market volatility, combined with fierce competition, led to a decrease in the company’s sales and service revenue for the first time in several years, dropping from 5,631.15 million baht in year 2023 to 4,969.89 million baht in year 2024, representing a decline of approximately 11.74%. Profit also decreased, falling from 637.51 million baht to 506.25 million baht, or around 20.59%.
Despite the decline in sales and profits corresponding to market conditions, the Board of Directors believes that the company’s cash flow remains strong and its financial position stable. Consequently, they have decided to pay an additional dividend for the second half of year 2024 of 24 satangs, bringing the total dividend for the year to 50 satangs, slightly lower than last year. The dividend-to-profit ratio will be approximately 86.21% for this payment, which is considered acceptable under the current stable financial situation.
In response to the business pressures experienced this year, management has continued to focus on improving production efficiency. The Company has undertaken three major production capacity expansion projects:
(1) The expansion of concrete roof tile production capacity with a budget of 474.96 million baht. This completed project will increase production by 22.8 million sheets of concrete roof tiles and 1.2 million pieces of concrete covers annually. Commercial production is set to begin in July 2024.
(2) The installation of an additional truss production line to accommodate the increased output of concrete roof tiles, which has been operational since May 2024.
(3) A project to expand the production capacity of autoclaved aerated concrete production line by an additional 2 million blocks per year, with a total budget of 648 million baht. This project is currently 80% complete and is expected to finish in May 2025.
Furthermore, various projects aimed at enhancing machinery and production processes are leading to improved production efficiency, better product quality, reduced raw material usage and production costs, as well as enhanced transportation and logistics efficiency.
The Board of Directors is confident in their ability to sustainably manage the company’s operations and navigate the business landscape in the coming year and beyond. They would like to express their gratitude to shareholders and investors for their continued support and encouragement.
Mr. Prakit Pradipasen
Chairman of the Board