Message from CEO

We continued our regional expansion plans in 2023 to roll out more balanced and diversified footprint of products and portfolio. Our new sustainable Cambodia green field investment project has been completed, with official commissioning targeted for January 2024. In the fourth quarter, we were awarded the FSA Silver Award from the SAI Platform for cultivating and scaling sustainable agriculture practices in Cambodia for over 800 organic tapioca farmers. Our solar energy plans continue per plan as we target that 50% of our Company will be powered by renewable energy within the medium term, form 2026 to 2027. Regionally, the execution of our commercial plans has enabled strong double-digit growth for our high-value-added ingredients, outperforming growth in our Vietnam and Indonesia market segments.

I am delighted to share that we sustained our Baht 10 billion in sales revenue despite the macro challenges from climate and economy in 2023. This achievement is the fruit of the strategy designed to transform towards food and high value-added B2B ingredients. As the next phase of our transformation journey begins, we will continue to accelerate investments in new ventures, and expand our footprint into fast growth APAC markets such as India, Indonesia, and the Philippines. All these efforts are a testament to the Company’s transformation strategy, deepening our local sales, marketing, and technical development capabilities with regional offices and R&D labs.

Our food business continues to thrive in 2023 with 7% growth in sales and 10% growth in profit. Notable growth in Vietnam and Thailand were due to successful launches of innovative products, and shift in partnership strategies. Our instant Ready to Eat Vermicelli cup noodles remains number one in the market and have received the Nielson IQ innovation award. With the changing macro and consumer trends, we continue to invest in serving our consumers better every day through taste, texture, and nutrition.

Last year has been challenging for our B2B ingredients and starch solution business due to the severe El Niño leading to 25% to 30% decrease in tapioca productivity in the region. Due to the strategic sourcing plan and strong execution on the ground, the supply shortage for the Company was less than 5% year on year. Delivering on our promise to our consumers is our priority and we have strived to ensure minimal supply chain disruptions. We remain the market leader for tapioca food products in China, and have built stronger footprint in Middle East, North America, and APAC. Building on our foundation and strength in tapioca-based products, we have continued to diversify into new ranges of organic, modified, and pre-gelatinized starches as higher-value ingredients to serving growing global demand for food.

Our proactive approach to managing inflationary pressures, coupled with our commitment to sustainability, has enabled us to deliver value for our shareholders. All in all, the Company’s sales remain over the Baht 10 billion mark and net profit for the period from 1 January to 31 December 2023 based on its consolidated financial statements amounted to Baht 28 million (Baht 0.05/ share). On this note, the Board of Directors has resolved to recommend a dividend payment of Baht 0.091 per share in respect of the full financial year ended December 31, 2023 which is subjected to shareholder’s approval at the Company’s Annual General Meeting on April 24, 2024.

As we embark on the next phase of our journey, we promise to continue to build our legacy and to remain at the forefront of innovation. We are deeply committed and excited for the next phase of Thai Wah’s transformation. I extend my sincerest gratitude to our associates, partners, and stakeholders for your continued support on our journey. Together we will continue to catalyze a better tomorrow for all in Southeast Asia as well as our global customers.