Message from Chairman and CEO
The year 2017 was a triumphant year for CP ALL Public Company Limited (CPALL), marking it with great honor for being selected to be in the 2017 DJSI Emerging Markets for the first time in Food & Staples Retailing Category. CPALL is the sole Thai and Southeast Asian Company that has been awarded in the mentioned category. Furthermore, the Company has also been certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption. Such successful achievements are derived from the Company’s effort in establishing its business foundation based on corporate social responsibility and the consideration given to the importance of all stakeholders throughout the supply chain that can create sustainable value for the business.
Despite the gradual recovery of Thai economy, business operation in 2017 has encountered a number of challenges, including the fast-growing technology that significantly played a vital role in everyday life or the vibrant changes in consumers’ needs in products or services. Hence, CP ALL Public Company Limited has kept up its pace, believing that changes occurred would lead to new business opportunities for the Company to grow. Thus, during the past years, the Company has enhanced its efficiency, attuned both short- and long-term strategies, developed new business models, searched for new markets, and applied new technology into our business operation. This included doing product ordering and purchasing via e-commerce or coinciding with cashless society by accepting payment anywhere and anytime for product and service through convenient payment methods such as credit cards or eWallet in order to address our customer lifestyle and meet all stakeholders’ expectation, gearing the Company towards the sustainable growth.
Regarding the convenient store business, “7-Eleven” is stepping into its 30th year since the trademark has been granted from 7-Eleven Inc. in the United States of America in 1998. Through all the past decades, the Company is committed to creating added-value to customers by offering differentiation, assortment, and convenience by continuously improve products and services at 7-Eleven stores. The development of products and services has been undertaken. For example, among ready-to-eat meals and ready-to-drink beverages, the Company has sourced new raw material and improved its cooking receipe to enhance taste of main dishes, appetizers, freshly brewed coffee in order to offer good experience for 7-Eleven’s customers, which totaling over 11.8 million people per day. In addition, in 2017 the Company has achieved the target of expanding store network to 10,268 stores nationwide. In 2018, the Company’s store rollout plan will remain intact with 700 new stores, in a progress to achieve the next target of having 13,000 stores in Thailand by 2021 under the vision “We serve convenience to all communities.”
The Company is committed to reinforce the “Innovation Culture” to be embedded in the convenient store business with the creation of innovation for work processes, products and services in the stores through the President Award, the Shoaling Innovation Awards, the Innovation Days and the Process Excellence Award, organized every year by the Company. These projects aim to promote and support further development of innovation in the business, in accordance with the mission “Creating customer engagement through innovative products and services and enhancing good relations with communities and the society” and also align with Thailand’s strategy. Driving the economy with innovation is a significant factor that will fortify Thailand’s economy in the year to come.
For cash and carry business, “Makro”, which managed by Siam Makro Public Company Limited, was able to retain its solid operating results in domestic market. At the end of 2017, Makro had a total of 123 stores nationwide, providing service to general and member customers which include more than 3 million small and medium enterprises. In driving the country’s business to grow fast and firmly, Makro focuses on developing a new store model, customer-centric products and services, and an IT system to serve with e-commerce business in the future. Makro, thus, strives to seek new investment opportunities in potential overseas markets to strengthen its future business growth. In 2017, Makro had marked a significant footprint as it opened its first store in Cambodia, making it the first overseas store. It was a great success gaining an overwhelming positive feedback from Cambodian customers.
In regard to the financial position, the Company focuses on enhancing stability and strengthening the financial position. In addition, we recognise the importance of financial risk management as well as managing finance costs to remain at a suitable level and controlling debt to equity ratio to be lower than the covenant. In 2017, the Company succeeded in issuing debentures as planned, reflecting the investors’ confidence in the Company.
On behalf of the Board of Directors and the Executive Committee, we would like to express our gratitude to all of our customers, business partners, shareholders and patrons for always having trust in and giving support to the Company. Additionally, we would like to thank and express our admiration towards the management and all employees for their determination and effort with their full abilities in managing and performing professionally, contributing to the Company’s achievement according to the goals jointly set. Lastly, the Company pledges its commitment of conducting business by taking into consideration the maximum benefits for all stakeholders and customers along with developing the economy, society, communities and the country, leading CP ALL Public Company Limited to be a quality organization which grow sustainably and harmoniously with Thai society in perpetuity.