To All Shareholders

         In 2023, the world and Thailand were able to start moving forward from the Coronavirus Disease 2019 (Covid-19) pandemic, which had impacted everyone in the previous years. Business operations and way of life have managed to gradually recover. However, prolonged unrests such as the Russia-Ukraine war, and situations in the middle east still affect logistics and the global economy. Increasing effects from climate change also have impact on production and cost of goods especially agriculture produce.

         Tipco Foods Public Company Limited has regularly adjusted its strategies to accommodate such changes, and as such, generated total sales revenue over Baht 2,588 million, which represents a decline of 10 percent compared to the previous year, as a result from rising costs of goods and logistics. Details can be further explained in two core business groups as follow :

1. Beverage Business : In 2023, the Company’s sales increased by 6 percent compared to the previous year. There was a 4 percent growth in the premium juice market, which is Tipco’s main market and currently holding 29 percent share. The brand is recognized for its reputation, product quality and new product offerings such as the launch of Tipco Nature Up and Tipco Chewy in the past year. The mineral water market saw a 22 percent growth compared with previous year, with Aura holding 16 percent share. In the past year, the market faced tough competition with new players entering the market such as 6ty Degrees brand and brands like Purra investing in celebrity presenters. The market also demonstrated that the trend for a healthy lifestyle remains popular and continues to grow.
2. Vegetable and Fruit Business : In 2023, the Company’s sales decreased by almost 50 percent, particularly sales of canned pineapple in dominant markets such as the United States and European markets as a result of the global economic recession and the Russian-Ukraine war. Also, as a result of draught season which saw availability of pineapple supply less than forecasted, causing a rise in principle costs. The Company has adapted and shifted production towards concentrated pineapple juices where there are still demand from market, and increase production of other processed fruits such as dehydrated mangos for airline companies.

         The Company continues to focus on quality control, management of raw materials supply together with production cost management, improvement of pineapple farming process to increase productivity per rai, support development of sustainable pineapple cultivation with farmers by way of income guarantee project such as “price per kilo” and market guarantee scheme.

          For the herbal extraction business, there was a 20 percent decline from the previous year resulting from stagnant market after Covid- 19. Herbal extract products are carefully selected with partners at the source to gain the best herbs without contamination. The herbs are processed with the most efficient system and equipment in order to deliver the highest quality extracts to pharmaceutical and supplement companies in the growing market of healthy lifestyles products. The Company is confident to be able to turn around the market situation in the next year.

          With goals set toward sustainable growth in 2024, the Company has adjusted its business structure, strategic plan, and plans for the Core and Non-Core businesses. This includes capacity development for staff and processes, product and innovation development to capture the health and holistic trends. Furthermore, strategic cost management for goods and logistics, reducing emissions from all company activities, including risk management, all which will contribute to business opportunities under the concept “TIPCO develops business along with environment and society.”

          On behalf of the Board of Directors, I would like to thank the shareholders, customers, trading partners and business alliances for the continued support to the Tipco Group of Companies, including all executives and employees for their full dedication and hard work in the past years.