For the past five decades, Buriram Sugar Group has determined to build its strength sustainably, simultaneously to encourage the competitions in Thailand which mainly driven by agriculture to reach their full potential by applying the modern technology and innovation in agriculture products processing to create higher value of the agricultural products.
The Company has studied the possibility of expanding the investment on new businesses for generating additional values of the company. Also, the company is willing to develop both of its employee and the sugarcane farmers in respect of the mission – “Sugarcane Agriculturist Businessmen”
Chairman of the Board of Directors
Mr. Anant Tangtongwechakit
Chief Executive Officer
Although in 2019, the price of sugar in global market has currently fallen, it was widely advised that the product would be lower in term of quantity than the customers’ demand for five to seven million tons in the 2019/2020 crop year, the sugar stock continue to stay at eighty million tons. This would require time to resolve this situation of over-supply and continue pressure on sugar prices of the movement of 12.8 to 13 cents/pound. However, the rise is to be expected in the third and possibly fourth quarter in the following year. The assumption would take in account to the change in customers’ behavior and decreased sugar consumption. They were appeared to become more aware of their health, therefore, take some precautions in their diets. This factor has, in turn, driven the industry to prefer the sweetener. In addition, the world economics due to the uncertainty on trade war and the plunging oil price, have been stepping down in particular the manufacturer as well as the exporters contributing to the similar trend of the commodity pricing.
According to the aforementioned factors of economic and the demand and supply of the sugar, the company’s operation result of 2019 earn the revenue from providing goods and services in total of 6,051.90 million Thai Baht and the net loss of 511.71 million Thai Baht. The key element for this trend were the investment in refined sugar, the investment of falling film evaporator and the Bagasse packaging’s projects have not yet fully redeemed. While the company’s expenditure has been steady for example the depreciation, the managing and financial costs to create diversity in business and lessen the risk exposure from the fluctuation in the pricing. The expense also included the offering of the alternatives to its original products and the usage of decomposable packaging on grounds of the environmental awareness.
Although, the consolidated revenue of the year 2019 has slightly decreased, the company continued to put its focus on the sustainable development, given that there are several consideration to business dynamics. These would cover benefits of internal and external stakeholders, modern technology and upcoming innovation supporting the process of cultivation and manufacturing, including provide knowledge to the sugarcane farmers in respect of the mission - “Sugarcane Agriculturist Businessmen”. This would allow this profession to be stable, make ends meet, and pave the way for a successful company in the long run.
In regards of the biomass power plant in the previous year, the power plant group earned revenue from the operation in amount of 893.05 million Thai Baht which is 60.46% higher than 2018. Moreover, Buriram Power Co., Ltd. (“BPC”), a subsidiary company has achieved Energy Globe National Award 2019 as the biomass power plant on Friday 20th September 2019 from Mr. Gunther Sucher, the Consul of Commerce, at Australian Embassy of Thailand. Energy Globe National Award is today’s most prestigious environmental awards. It is awarded annually to projects focusing on sustainable development, with participating 187 countries.
Additionally, the Group, with consolidation of SEW, intend to produce their decomposable packaging made from Bagasse for sale within December 2019 or conveniently January 2020. The collaboration is to add value to their existing materials of sugar production, extend their potential and minimize their exposure to solely depending on sugar
For Buriram Sugar Group, the social and environmental responsibility has long been a priority. Their role and responsibilities are linked to the growers, neighborhood and employees’ well-being. Thus, the development is based on the respect for the animals and the reconciliation to the community. The company has collaborated with The Zoological Park Organization under the Royal Patronage of H.M. The King, True Corporation Public Company Limited and Asia Aviation Public Company Limited on the construction of the Eastern Sarus Crane Reservation & Learning center in Buriram Province. The cranes were listed as extinct more than 50 years ago. This project also makes the area as a natural learning resource for juveniles and all in general and attract opportunities to the surrounding communities sustainably for example organic Mali farming project promoting the career opportunities in agriculture to local farmers in the Non Klang areas as a mean to generate more income and empower the community since the social responsibility is the key to its business success for sustainable development, together with improving the quality of life and creating happiness for sugarcane farmers, people in the surrounding community, and all employees.
On account of overseeing and monitoring the compliance with the good corporate governance, this led to the result of being assessed as “Excellent” with the average score of 95% which is higher than the average score of the overall listed companies of the Stock Exchange of Thailand which were at 82% under the project of the Assessment of Corporate Governance Report of Thai Listed Companies (CGR) in 2019 by Thai Institute of Directors (IOD).
Lastly, on behalf of the Board of Directors, the executive committee and individual employee, we would therefore like to express its sincere gratitude to all clients, shareholders, business partners, stakeholders and all other relevant parties for their continued contribution and support toward our business, with a fervent wish that everyone will go stronger with the growth of the business and society altogether sustainably.