In 2017, BRR regarded the operating performance as satisfactory due to the net profit of 525 Million Baht, an increase of 412 Million Bath or 363% year-over-year.
As a result of the rising world sugar price caused by the drought in the major sugarcane producing countries such as India, China and Thailand, the revenue from export sugar sales was increased 37% year-over-year to 838 Million Bath.
The revenue was recognized from the sugar sales volume of 186,000 tons which was higher than the previous year by 15,000 tons. Moreover, the revenue from electricity sales was increased 28% year-over-year to 108 Million Baht resulted from the growth in electricity generation. The amount of electricity sold was 109 million kilowatts, an increase of 15 million kilowatts year-over-year.
Net profit of 525 Million Baht, an increase of 412 Million Bath or 363% year-over-year.
Chairman of the Board of Directors
However, BRR is strongly committed to developing the quality of raw materials for the higher sugar yield per ton in accordance with the business philosophy “Sugar Made in the Field”. In addition to well-planning, management as well as utilization of technology and innovation, BRR has an intent to enhance the competency of both its employees and sugarcane farmers with the mission of “Sugarcane Agriculturist Businessmen” in order to create the stability for such career which provides well returns and happiness to sugarcane farmers who can pass on experiences and knowledge, as well as inherit the business from generation to generation. BRR believes that this commitment will lead to the sustainability of raw materials and also the business operations.
Besides the treatment of sugarcane farmers, BRR has emphasized the community responsibilities. The activities of community relations have been organized on a regular basis such as the education support under the project “the 3rd Knowledge Return for Youth” to provide the students with knowledge and understanding about environment, drugs and campaign against child labour in sugarcane plantations. Moreover, another education support project is “BRR Cuts in Classroom Hours and Rises in Knowledgeable Time on the Way to Sustainability” held at Nongkwang School. As a result of this support, Baan Nongkwang School has been nominated as a representative of the Northeast Region to participate in the Students’ Handicrafts Event, and has received the winner award for 4 consecutive years. For health care support, the health check-up service has been implemented for 4 consecutive years by means of the mobile health unit for people who live in 5-kilometer-distance workplace area. Furthermore, BRR has also conducted various projects, and surveyed the living conditions of people around the nearby workplace in order to build the strong relationship with the communities.
For the operating performance of the biomass-fired power plant in 2017, the company received the first-runner up award for the cogeneration project from Air Chief Marshal Prajin Juntong, Deputy Prime Minister in the event of Thailand Energy Awards 2017 by the Department of Alternative Energy Development and Efficiency, the Ministry of Energy, and also received the winner award on the cogeneration category at the 35th ASEAN Ministers on Energy Meeting (35 AMEM) in Philippines.
Regarding the opportunity for ongoing business growth and development, there was a resolution to set up the Buriram Sugar Group Power Plant Infrastructure Fund (BRRGIF) by the Securities and Exchange Commission on August 1, 2017, and offering of investment units totaling of 350 Million Units with the last offering price and par value per unit by 10.30 Baht. The amount of first offering of investment units was equivalent to 3,605 Million Bath, and such infrastructure fund trading in the Stock Exchange of Thailand was firstly operated on August 7, 2017. Such investment is used for the expansion of power plant business, refined sugar project and bagasse packaging project which are in the process of education and research, as well as other projects of Buriram Sugar Group for the sustainable business growth.
Throughout 2017, BRR has placed emphasis on compliance with the good corporate governance and anti-corruption. After the declaration of Thailand's Private Sector Collective Action Against Corruption (CAC), BRR has conducted its businesses in accordance with the policy and measures on anti-corruption, as well as informed and communicated such matter to business partners and related parties, including organized in-house seminars and campaigns. Besides, the whistleblowing channels have been implemented for stakeholders who report potential corruption, or other serious wrongdoings and give suggestions. However, there was no any whistleblowing issue or suggestion received from stakeholders in 2017. Thus, the company is in the process of certification submission from the Collective Action Coalition Committee. Such submission process is expected to be completed within March 2018.
On account of overseeing and monitoring the compliance with the good corporate governance, this led to the result of being assessed as “Very Good” under the project of the Assessment of Corporate Governance Report of Thai Listed Companies (CGR) in 2017 by Thai Institute of Directors (IOD).
Finally, on behalf of the Board of Directors and employees, we would like to appreciate the sugarcane agriculturist businessmen, shareholders, customers, business partners, and all stakeholders who always give us the great supports and suggestions for the business advancement. BRR will continue to operate the businesses in accordance with the good corporate governance for sustainable growth in the years to come.