Sustainable Development
Message from the Board of Directors
Chairman of the Board
Chief Executive Officer
In 2021, the COVID-19 pandemic in Thailand and across ASEAN seemed far from over and became much worse than in the previous year. The stringent measures to contain the spread of COVID-19 infections imposed by the government caused an adverse impact on the wider economy and people's purchasing power. In addition, the construction industry posted an ongoing slowdown. Underlining the crisis management, the Board of Directors set in motion proactive initiatives to handle uncertainties and challenges; seeking new business opportunities in collaboration with strategic partnerships and offering new innovative solutions and products to better respond to the customer behavior.
Although the pandemic brought disruptions and challenges to our business, we delivered a strong fiscal performance, reporting revenue of THB 17,570 million, up 8%. This achievement resulted from our robust foundation, strategic agility, information technology leveraged to expedite higher business efficiency, and our brand-building expertise, which we markedly built on through online platforms. Additionally, the revenues from construction chemicals and gypsum boards were an integral part to bolster our total revenue growth. At the core of our approach is a commitment to forging ahead with our portfolio expansion of construction chemicals and construction materials along with our leading decorative paint and coating brand to offer a total solution experience to our customers.
Strategically, we made substantial progress on expanding the non-decorative paint and coating business that included a wide range of construction materials over the past year. We successfully acquired the new tile business by holding 52% ordinary shares in 2 companies, namely Phacha Enterprise Co., Ltd. and Phawatri Intertrade Co., Ltd. We recognized revenues from the 2 companies since February 2021. We also teamed up with a strategic partner to set up a new joint venture company called Incosource Co., Ltd. for sourcing tools and hardware in October 2021. We hold a 55% stake in the joint venture company. The revenues from those 3 acquisitions will further help shore up our business growth. On December 16, 2021, the Extraordinary General Meeting of Shareholders No. 1/2021 approved the transaction to acquire 51% of ordinary shares of Gypmantech Co., Ltd. – a gypsum board manufacturer. This transaction, which is expected to be completed by 1Q22, will enable us to increase higher profitability from the gypsum board business.
The Board of Directors closely monitored the management team on setting the corporate strategy and objectives suitable for business needs and oversaw the performance on a regular basis. This allowed us to deliver good returns to shareholders while engaging all stakeholders, developing cutting-edge innovations and solutions that are both good for the environment and society. We also adhere to ESG principles well embedded in what we do including preparedness to handle challenges in this fast-paced world to enhance our corporate sustainability as per the following examples.
With the ongoing ESG-oriented efforts, we received an “Excellent – 5 Star” for the Corporate Governance Report of Thai Listed Companies 2021 by the Thai Institute of Directors (IOD) for 3 consecutive years, and a full score of 100% for the quality evaluation of the 2021 Annual General Meeting of Shareholders by Thai Investors Association for 3 consecutive years. Moreover, TOA was named for inclusion in the list of Thailand Sustainability Investment or “THSI” and in the list of SETTHSI Index for 2 consecutive years as well.
On behalf of the Board and management team, we would like to give our sincere thanks to everyone at TOA for their dedication and hard work to drive business growth and overcome uncertainties and challenges together. Furthermore, we express heartfelt appreciation to all relevant parties for trusting and supporting us as always.