TIPCO - Annual Report Review
Annual Report Review
Company: Tipco Foods (Thailand) Public Company Limited
Ticker Symbol: TIPCO
The 2003 annual report for TIPCO arrived recently in the Thaistocks.com offices. The brightly covered report is the thickest annual report we have received so far. TIPCO has been a long-time favorite of Paul Renaud and Thaistocks.com.
TIPCO is a worldwide industry leader in Pineapple canning. It is also well known in Thailand for its great tasting 100% juice products. The company has recently launched more ‘premium’ juice products and also less expensive juice blends.
TIPCO’s annual report contains a lot more qualitative information and statements than other annual reports received so far. Despite the poor English, there is an obvious effort by TIPCO management to fully disclose as much information about the operations and strategies to its shareholders as possible. I will summarize some of the sections of the annual report in the paragraphs below.
The report opens up with the financial highlights for the past five years. It is important to note that TIPCO underwent a 10-for-1 stock split in December 2003, so some per-share results will be affected accordingly. The financial highlights for the past 3 years are included below.
TIPCO has had upward trends in book value, earnings per share, revenues and profits in the past three years. Revenues were up 13.86% in 2003 and Net profits were up an impressive 54.5% when compared to 2002.
The Chairwoman’s report is given by Mrs. Anurat Tiamtan. She highlights TIPCO’s strong financial results in 2003, the launches of new product lines, the company’s corporate governance program and the outlook for the future. The company has a goal of reaching five billion baht in sales in 2007. Total sales in 2003 were 2.8 billion baht.
Other important points found in the annual report included:
- The company has been ISO 9000 compliant since 1995. The company adopted ISO 9000.2000 standards in 2003.
- TIPCO began operations as a pineapple plantation in 1976. The company went public in 1989. The company began selling fruit juice in 1993.
- The company mainly focused on the expansion of the domestic market in 2003. There were five new products launched: carrot juice, ‘Squeeze’ juice, Sala mix 40% and Grape mix 40% (Tipco Cool), chrysanthemum green tea and no-sugar green tea. Tipco opened its first ‘Squeeze’ juice bar in Bangkok in the end of 2003.
- There is ample space in the report covering Tipco’s plans for its vision, culture, corporate governance program, rights of shareholders, control systems and contributions to society.
- Tipco sold a share of Tipco Ashphalt in 2003 for 44.5 million baht. It plans to keep hold of 20-25% of this company in the future.
- There has been continuous improvement in the rate of return on assets and fixed assets in recent years. The company attributes this to brisk overseas expansion and increased overall productivity
This was a very thorough report prepared by TIPCO management. TIPCO will continue to be a very important stock in Paul Renaud’s watch list in the future.
Best Regards,
Nathan Szabo
Thaistocks.com
