ิBangkok--Feb 20--Siam Makro
Siam Makro Public Company Limited, operator of Makro cash-and-carry trade centers, Makro Auto Care service centers (MAX) and Makro Office Centers, reported a net profit of Bht 505.7 million for its 1997 fiscal year ended 31 December. Book value per share increased to Bht 30.76 per share, up from Bht 29.95 in the previous year.
“Whilst the company enjoyed double-digit growth in sales in the first quarter, overall sales results for the year are only slightly higher than last year due to general market conditions,” said Mr. Jacob de Jonge, president of Siam Makro Plc. According to Mr. de Jonge, Siam Makro continues to be in a strong financial position as it enters 1998. The company reported consolidated assets at the end of 1997 totaling Bht 14,200 million and a robust cash position with cash and deposits of Bht 2,430 million, and minimal debt funding of only 6.9% to equity. The company’s performance was supported by the absence of foreign exchange losses reflecting a policy of prudent treasury management.
“With pressure on volume and margins, we continue to focus on improving management operations and operating costs through internal efficiencies and the strengthening of supplier relationships through cooperation and technological improvements,” he said. Among the initiatives taken by Siam Makro with suppliers during the year are the implementation of Efficient Consumer Response (ECR); the standardisation of bar-coding; the introduction of hand-held scanners to promote efficiency in goods receiving; enhancing of visual store displays; increased focus on efficient use of energy and building resources; and continued emphasis on maximising staff productivity. Furthermore, he said Siam Makro’s management is committed to responding rapidly to the current market situation and cited successful reduction in inventory levels despite an increase in the number of Trade Centres and subsidiary stores.
During 1997 the company invested over Bht 1,600 million in subsidiaries and Makro store expansions including the opening of one new Makro Trade Centre in Rayong, 12 MAX Centres, 15 carwash stations, 8 gas stations, 2 Makro Office Centres and completed renovations of Makro stores in Chonburi, Nakhon Ratchasima, and Chang Wattana. During 1997, 15,240 square metres of Trade Centre sales space was added, bringing total Makro Trade Centre sales space to 162,848 square metres.
“Our commitment to selling quality food and non-food items all under one roof in high volumes and at the lowest possible prices is key to our success,” said Mr. de Jonge. Siam Makro’s customers are primarily retailers, caterers, and professionals in the service sector.
Siam Makro is the first operation in Asia of the SHV Makro Group of Holland, which is the world’s leading cash-and-carry enterprise. SHV Makro Group also has a presence in Asia in Korea, China, Taiwan, the Philippines, Malaysia and Indonesia. The group’s worldwide turnover for 1996 was approximately US$ 12,000 million (around Bht 540,000,000 million).
For further information please contact: Khun Panta Poonsapmanee or Khun Wichitra Khemalaap at Bangkok Public Relations Ltd. Tel: 652 1946-7. Fax: 652 1948.--End.