In January 2024, Thailand's economy presented a nuanced picture of recovery and challenge, as per the latest report from the Bank of Thailand. Amidst a global landscape marked by fluctuating demand and geopolitical tensions, the nation experienced a modest uplift in its economic activities, though the path to robust expansion remains complex.
Merchandise exports, excluding gold, rebounded, indicating a partial revival in international trade dynamics. This uptick was notably driven by agricultural products, electronics, and chemical goods, signalling diversification in Thailand's export portfolio. However, the recovery of the manufacturing sector was uneven, with certain industries facing sluggish production rates due to global demand uncertainties, inventory surpluses, and structural challenges.
The domestic sphere showed more encouraging signs, with private investment gradually on the rise and service sector activities buoyed by improvements in tourism revenue. However, this positive momentum was tempered by a contraction in government spending, primarily attributed to reduced central government expenditures.
Economic stability indicators presented a mixed bag. Headline inflation eased across major categories, a relief driven by lower prices of fresh food and energy. Yet, the labour market exhibited strains, particularly in export-oriented manufacturing and certain service segments. Additionally, Thailand's current account dipped into deficit territory, marred by a deteriorating trade balance despite surpluses in the service sector.
Investment in machinery, equipment, and construction showed signs of vitality, reflecting sustained interest in industrial and factory development. This contrasts with the continued decline in merchandise imports, highlighting a cautious approach to external procurement, especially in fuel and consumer products.
Consumer spending remained stable, supported by government interventions such as energy subsidies and tax rebates. The automotive sector, in particular, benefited from increased consumer interest in durable goods.
Tourism provided a bright spot, with foreign arrivals and revenue on the rise, thanks to strategic positioning and an improved global travel climate. However, the contraction in public spending underscored fiscal challenges, including budgetary delays and reduced educational disbursements.
The Bank of Thailand's report underscores the intricate balance between recovery efforts and ongoing economic pressures. As Thailand navigates these complexities, the interplay of domestic initiatives and global market dynamics will be crucial in shaping its economic trajectory in the months ahead.
As CEO, Jatuphat is urged to spearhead progress by setting a bold target of 8% growth for 2024, undeterred by economic challenges and the resilient property sector. As an industry leader, Jatuphat is confident that TOA's wide range of products covers diverse needs in Thailand. The flagship products include SuperShield paint, TOA Shield One Nano paint, and Four Seasons paint. In addition to existing product lines, TOA's business expansion has anchored a complete Total Solution, including construction chemicals, gypsum board, tiles, hardware, and construction material products, to create a competitive advantage and growth opportunities over competitors.
TOA Paint (Thailand) Public Company Limited or “TOA” announces its success affirming position as Thailand’s number 1 paint conferring by the highest unrivaled proportion of market share amounting to 22.479 billion baht in 2023, rising by 8% with net profit of 2.569 billion baht, totaling 81% growth. Sales target is set to achieve growth at 8% in 2024 while stock dividend is agreed by executive board members to pay 0.35 baht/share. The company is trusting the profits are on the positive trend, marking the 60th milestone driven by the strategic sustainable growth development align with ESG framework.
TOA Paint (Thailand) Public Company Limited led by Jatuphat Tangkaravakoon CEO stated “In 2023, the company’s total revenue was 22.479 billion baht, rising by 8% Y-o-Y. Meanwhile, in Q4/2023, the company’s total revenue performance was at 5.813 billion baht, grew by 6% compared to the same period in the previous year. The exceptional performance is contributed by the continual growth of all sales channels as well as TOA’s branding strengths and wide coverage of distribution channels. Availability of products covering all needs for all customer groups as well as holistic services and the business plan adjustment during Covid-19 are contributing to our success. Therefore, since 2020, TOA is continuously making strides above industrial competitors.”
In 2023, the company’s net profits marked 2.569 billion baht, rising 81% while the net profits generated in Q4/2023 marked 545 million baht, rising 87% compared to the same period last year. The increasing gross profits were contributed by the adjustment of the raw material strategy plan alongside the internal corporate management in accordance with the sustainability measures. The enhanced performances are subsequently benefited by the Digital Transformation deployment and Automation system.
In addition, the consumers trend is propelling towards the innovative products certified with the highest standards and safety where premium products are categorized in the segment. TOA is recognised as brand leader for premium product line therefore the trend helps fostering the total sales and generate incessant profits for the company.
In this regard, the meeting of the Board of Directors on 28 February 2024 has approved the proposal to the general meeting of shareholders which will be held on 29 April 2024. The purpose of the meeting is to consider the approval of dividends payment yielded by the second half of 2023 performance at the rate of 0.35 baht per share. When combine with the interim dividends for the first half performance that have already been paid at the rate of 0.33 baht per share, it will be included as a dividend at the rate of 0.68 baht per share, representing a dividend payout rate of 61% from net profits according to the separate financial statements of 2023.
In 2024, the company marks its 60th milestone since beginning to import paint from Japan in 1964. The factory and research centre are built for the purpose of paint formulas and production technology development, paving the way to achieve the status of No.1 Paint Brand in Thailand with established recognition and competitive benchmarks against international brands.
TOA's business expansion goes beyond building paint products. The brand boasts the strongest and most comprehensive network of dealer partners in Thailand, expanding to over 8,600 stores. Additionally, TOA is expanding its business by establishing manufacturing bases in the ASEAN region in 6 countries, including Vietnam, Indonesia, Myanmar, Cambodia, Malaysia, and Laos, as part of a plan to penetrate the ASEAN market for further dynamic growth.
TOA is committed to taking bold steps to transform into a "sustainable organisation" through the following strategic moves:
- Foster economic growth: Maintain the entity’s leadership as the number one building paint in Thailand by creating innovative products and services that meet customers’ needs, including safe and eco-friendly products. Conduct harmonising and inspiring coexistence beyond paints and building leadership in other expanded businesses, including new opportunities to generate continual profitable growth under governance enabling responsibility for all shareholders.
- Employee Care: Recognise that fellow employees are significant resources in driving the organisation's success. Develop communities and society through activities and public projects that boost benefits in both short-term and long-term goals.
- Environment Care: Commit to being a green organisation from upstream to downstream through climate change management and innovative product development, with a focus on environmental friendliness. Implement a circular economy system and maximise resource use and waste management to reduce greenhouse gas emissions by 20% by 2025, aiming to achieve zero carbon emissions by 2050. The "TOA GREEN CERTIFIED" standard symbolises high-quality products guaranteed by international safety standards, fostering awareness and attention among customers and industrial competitors.
Jatuphat concluded, “By transforming TOA into a sustainable organisation following ESG guidelines, we embark on a crucial mission enabling TOA to overcome economic, social, and technological changes, surpassing business challenges and continuing to grow gracefully. We are therefore prompted to expand into territories beyond the paint business. TOA is committed to operating with values in all aspects, as demonstrated by our business conduct over the past 60 years. We are ready to move forward side by side with all.