Message to Shareholders

Amidst global economy heading to recession with the crisis of COVID-19 pandemic, the economies of all regions and countries around the world have been critically threatened in particular manufacturing and tourism sectors. And, when this crisis will end is difficult to predict. As a result, the Company is aware of its duties to lessen the impact, reviewing and updating the strategic business plans in terms of methods of earning profits, cost management and reduction including investment plans as well as creating emergency Business Continuity Plan: BCP which enable the business operations to run smoothly and to achieve its objectives as planned. As of the company performance in 2020, Thailand’s Cane and Sugar industries has experienced challenges in relation to cane production due to its worst drought in four decades. This year’s drought crisis results a total of 73 – 75 million tons of cane for extraction, down 44 % of cane production. There is also a reduction in sugarcane output due to drought for the major producer and exporter of sugar like India. However, BRR and its subsidiaries plan to cope with the drought by focusing on the effective management in terms of the sugarcane plantation for maintaining the volume of cane and enhancing the quality of sugarcane productivity along with the capacities of as much sugar extraction per tons of cane (yield) as possible.To improve the quality of sugar, the company has taken action to apply new technologies, responding to increasing demands of the consumers nowadays. These customers would include a group associated with manufacturing and general consumers in the domestic and international market. In today’s change in customer behavior, the consumption of sugar has substantially decreased over the past few years since people were appeared to become more aware of their health, contributing to dietary practices.This factor has, in turn, driven the industry to prefer the sweetener or sugar substitutes. In addition, the world economy downturn in particular manufacturing industries and export sectors contributed to the similar trend of the commodity pricing.

Today, the company’s main products are sold under the brand name “BRUM”. The products comprise of the following: refined sugar, brown sugar, and white sugar. The Company has implemented marketing strategies to increase brand awareness of these “BRUM” products; increasing chances of being remembered in the market, with an aim to create sustainable brand loyalty in the long run. A group of potential consumers include multiple types of business industries such as industrial product companies, modern trading, wholesale distribution, and direct sale companies.

According to the aforementioned factors of economy and the impact of Covid-19 outbreak, the company’s operation result of 2020 earns the revenue from providing goods and services in total of 3,982 million Thai Baht and the net profits of 6.17 million Thai Baht. The key factors were greater proportion of costs on sugar production. A higher proportion of this costs comprises energy, electricity, stream, woodchip, and wage. In addition to these factors, Sugarcane Ecoware Company Limited (“SEW”) as its subsidiary, the business of manufacturing packaging products which are made from bagasse, has been severely affected by the unprecedented global impact of the coronavirus crisis. Because of the disruption of international trade and expanding to new domestic market not enough to compensate its loss in export sales, the Company would not be able to achieve its business aims. Although, the operating expenses including depreciation, administrative expenses, and financial costs remain stable, this investment is not fully redeemed. Nevertheless, the major objectives of this business are to promote diversity in business and to support uncertainty in the sugar industry, particularly the risks from world sugar price fluctuation and to increase an eco-friendly packaging alternative, involving the use of biodegradable materials instead of plastics uses.

Although, the revenue of the year 2020 has dropped, the company has continued emphasizing the determination and prioritization to the sustainable development. This cover benefits of internal and external stakeholders, modern technologies, and upcoming innovation, supporting the cultivation and manufacturing, including providing 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 terms of Corporate Social and Environmental Responsibility in the past few years, a community enterprise, namely S.N.T, has been established in cooperation with the neighboring communities such as Sao Ae, Non Klang and Non Tao Thong, with the aim to increase profits and build the strength among people in the communities. Because Corporate Social Responsibility is the key that leading BRR to sustainable development path in parallel with the improvement of cane growers, nearby communities’ member, and staff standard of living.

On account of overseeing and monitoring the compliance with the good corporate governance, this led to the result of being rated “Excellent” with the average score of 94% for the 3rd consecutive year which is higher than the average score of the overall listed companies of the Stock Exchange of Thailand which were at 83% under the project of the Assessment of Corporate Governance Report of Thai Listed Companies (CGR) in 2020, carried out by the Thai Institute of Directors Association (IOD). The result reflects the Board of Directors, the executives and employees’ performance towards the organization, shareholders and all stakeholders with their firm commitment to Corporate Governance.

Moreover, BRR also firstly selected as one of the 2020 Thailand Sustainability Investment “THIS” or Thailand Sustainability Investment List in 2020 as the agricultural-industry and food business, hosted by the Stock Exchange of Thailand and given to listed companies that demonstrate outstanding commitment to sustainable development and contributions to the environment, society, and corporate governance.

Lastly, on behalf of the Board of Directors, the executive committee and individual employee, we would therefore like to thank you all clients, shareholders, business partners, stakeholders and all other relevant parties for maintaining continued trustworthiness and support toward the business operations of Company group, and assure you that even in the most-severe economic crisis in history, the Company group will be able to operate the business and overcome it steadily together with sustainable business management.