|Dear shareholders and all stakeholders,
Although the overall economy this past year was in the
doldrums due to the slowdown in the global economy with
consumer goods spending at a low, we are glad to inform
that with great determination and efforts from the management,
2018 was a growth year for our company. Our operations
returned a net profit of 12 million baht, an increase
of 115 million baht from the same period last year, which
had a net loss of 103 million baht.
The past year is not a good year for the tanning industry
in general and we anticipated this trend in advance and
took steps to prepare and cope with the global slowdown
of our industry. Key causes of the return to profit again
in 2018, are due to our focus on investment in both factory
improvements; Increase in machine efficiency and improvement
of production quality, including expanding production
capacity. Especially in the production of finished leather,
this finished leather capacity increased from previous
average highs of 1.8 million square feet to an average
of 2.1 million square feet per month. We will seek to
continue improving the efficiency of our product and deliveries,
including strengthening the marketing team.
In our tanning business we have invested in new machineries
to expand our production capacity starting from the second
quarter of 2018 to the level of satisfying the production
capacity that we expected for the tanning of cow leather
and pig skin. The business of personal protective equipment
or safety products under the brand "Pangolin"
in the past year has continuously reported increased revenue.
In addition to increased production and sales revenues
from safety shoes and protective equipment, we also received
additional income from renting safety equipment.
Going forward we will continue to invest in our industry
in order to prepare for future opportunities. We are sure
that the leather industry raw material prices will stabilize
and that leather is still needed globally. The leather
industry will continue to grow,especially when the global
economy starts to recover from the economic stimulus and
measures taken by many countries around the world. In
anticipating the challenges of trade and economic volatility,
every investment decision taken will be carefully screened
to ensure the best returns from such investments, ensuring
that it will be worthwhile and will progressive contribute
to the potential and growth of the company.
On behalf of executives and employees of CPL Group Public
Company Limited, I would like to thank the shareholders,
our stakeholders, business partners and trusted customers,
in being ready to grow together and move forward with
Chairman of the Board