To All Shareholders

         2022 marks the third year in which the world economy, including Thailand, has been affected by the Coronavirus Disease 2019 (Covid-19) pandemic. The business operations and people’s way of life have managed to adjust better as time goes by. However, during the first half of the year, the overall export continued to be affected by a shortage of liners and high freight rates, due to the preventive measures in several countries exposed to high potential infections, coupled with the prolonged conflict between Russia and Ukraine, and the economic slowdown, particularly in Europe, which also affected the volume and costs of goods, especially agriculture products, energy costs, etc.

         Tipco Foods Public Company Limited has regularly adjusted its strategies to accommodate such changes, and as such, generated total sales revenue over Baht 2,895 million, representing a growth of 19 percent as compared to that of the previous year. However, given the above impact on production costs, including the addition of the sales team structure, in 2022, the Company has earned a net profit of Baht 280 million, representing a decrease by 35 percent as compared to that of the previous year, from the following two core business groups:

1. Beverage Business: In 2022, the Company’s sales increased by 8 percent, particularly in export and food service markets, which started to improve in line with tourism.
            The overall ready-to-drink veggie and fruit juice market growth in Thailand increased by 7 percent from the previous year, and the Company remains the No. 1 fruit juice brand due to product quality maintenance and new product offerings. Last year, Tipco Izzi and Tipco Soza, sparkling juices, and Tipco C Double Plus, vitamin fruit juice 25% mixed with vitamin A, C and E, were launched to meet the needs of consumers.
            The mineral water market, as a whole, increased by 18 percent as compared to the previous year. Aura accounted for the 4th market share at 15 percent. The consumers’ health trend remained the mainstream, and as such, the mineral water which contains substances essential to the body, is recognized as a popular drink among consumers. It is expected that in 2023, the mineral water market would enjoy a tentatively positive growth rate.
   
   
2. Vegetable and Fruit Business: In 2022, the Company’s sales increased by 40 percent, particularly processed fruits in the United States and Japanese markets, despite the container shortages in the first half of the year, and the fact that export sales of processed fruits to Europe were directly affected by the Russia-Ukraine conflict.
             The Company continued to focus on quality control, management of sufficient raw materials, and production cost management, along with improvement of its pineapple farming to increase productivity per rai, and promotion and development of pineapple cultivation by farmers for sustainability, by way of guaranteed income (per rai) project for members, price (per kilogram) guarantee project, and market insurance program for farmers, etc.
             Moreover, herbal extraction products, including Andrographis paniculata extract capsule under Tipco brand and Ban Ta Khun Turmeric under Tipco brand, which serve as an alternative treatment for those infected or strengthen the body’s immune system, remained well received by consumers.

          2023 will continue to be a challenging year for Tipco Foods Group for sustainable growth under the economic circumstances which have a tendency to slow down. Tipco Foods Group will continue to focus on development of products in response to the healthy trend, management of product costs and efficient delivery, including management of potential risks of business operations, to bring about 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 Tipco Group, including all executives and staff for their full dedication and hard work all these years.