In the fiscal year 2018/2019 (1st April 2018 – 31st March 2019), the global economy has been fluctuated. The growth of many regions was unsynchronized, which is the result of trade war between the United States and China, Brexit and the increase of US Federal Reserve interest rate. All of these had an effect on the expansion of global economy. Regarding domestic economy, Thailand GDP grew by 4.1% last year. Although the macro economy has recovered well due to the expansion from consumption, the investment from private sector in the country and the government spending, there were the negative effect from the slowdown in exports and the increase of interest rate. EPG has operated business in many countries around the world; therefore, we were affected both positively and negatively.
As the Board of Directors, we believe that the operation under the strategies focusing on developing the innovative products and production process, the effective cost management and the appropriate price setting, including both domestic and international marketing help the Company handle the fluctuation of economy appropriately. Consequently, the turnover of the fiscal year 2018/2019, the total revenue from sales was 10,579.2 million baht, increased by 10.1, and the total net profit was 903.2 million baht, decreased by 9.1, compared to the previous year. The revenue from sales of our 3 main businesses, especially the revenue of automotive parts and accessories business increased from the new products and the business expansion in Australia. Regarding the plastic packaging business, its revenue has increased since the third quarter of the fiscal year 2018/2019 from marketing activities in food packaging and industrial product. EPG aim to increase efficiency in the operating cost, while this year, the company has booked the increase in provision in employee obligation due to New Labor Protection Act in Cost of goods sold while the rest is booked in sales and administrative expenses.
Regarding the increase in sales and administrative expenses, the relatively higher value in the expense were due to the investment in Corporate Branch, the cost in international marketing activities of the manufacturing and distribution of automotive parts and accessories in order to support the future growth, including the expense from provisioning for employee benefit obligations.
In this regard, the Board of Directors has resolved to pay an interim dividend for the first six-month period of 2018/2019 at the rate of 0.08baht per share, totaling 224 million baht. The dividend was paid to shareholders on 7thDecember 2018, and the resolution was passed at the Annual General Meeting of Shareholders for the year 2018/2019 to approve the annual dividend payment of 0.14 baht per share, totaling 392 million baht, total dividend for the whole year is equal to 616 million baht or 68.75% of the net profit (payout ratio).
The Company's success is to be a leader in innovation, and to be a world-class manufacturer and distributor for sustainable growth.
Creative Innovation Organization
The Company is well aware that the innovation is an important key to maintain the sustainable growth and to adapt to all changes. In addition to in-house research and development, last year, Aeroklas organized the “Idea can do” contest encourage employees to send the innovative ideas which could be further develop into product to satisfy the consumers, where 32 teams of employees participated in this contest. This project is a part of EPG innovative employee creation.
In addition, EPG is aware growing concern of plastic waste management, thus Eastern Polypack has been contributing in plastic waste reduction by designing the products to suit with the usage, and preparing production technology to support the bio-plastics material which can be used in producing the product without the investment in new machine.
Doing business in the Global market
During the previous year, EPG invested in expanding our various groups of business in foreign countries to support future growth. For example, Aeroflex USA Inc. in USA invested in expanding the production line with the high-speed automation to support long term growth in US market. Moreover, establish joint venture Aeroklas Duys (Pty) Ltd., South Africa, to operate the business of manufacture and distribution of auto parts and accessories for OEM and retail customers in South Africa. The reasons are that the market of auto parts and accessories in South Africa has a promising growth from the support of government; and South Africa is also the exporting base to Europe.
Create sustainable Growth
The growth of Eastern Polymer Group Public Company Limited (EPG) relies on the Company’s vision to grow with creative innovation in developing the product quality for the benefit of society and better living.
On behalf of the Board of Directors, we would like to thank all of our employees, business partners, customers, shareholders and supporters in all areas for their support and trust in the Company, please be confident that the Company will operate the business to grow and prosper based on the corporate governance and sustainable growth, and taking account into the interests of all stakeholders.
Mr. Vachara Tuntariyanond
(Chairman of the Board)
Dr. Pawat Vitoorapakorn
(Chief Executive Officer)