In 2016, Thailand's overall economic conditions remained stagnant which adversely affect domestic consumers' spending power. Moreover, competitive landscape in food and beverage business continued to be intense. These factors resulted in challenging operating conditions of the business in this year. Nevertheless, with strong team works, dedications and proactive approach in operating and managing the business by our management team and employees and the execution of our strategic roadmap "Vision 2020", a strategic plan of the Group which has been implemented since 2014 in order to become a strong and sustainable leading F&B company in ASEAN region with 5 core strategies per follow;
The execution of the above core strategies has greatly improve our business competitive advantages, strengthen our platforms while leveraging the Group's scale and diversity and drive business directions toward synergetic achievements within the Group resulting in outstanding operating performances in this year.
In additions, the Company continues to build brands strength to sustain market leading position by building brand awareness and executing innovative marketing campaigns to effectively engage targeted customers group. The Company also develops and researches new products including "Oishi Kyoho", first ever innovative RTD tea to include Nata de coco (coconut jelly) in Kyoho grape flavored green tea which received very good feedbacks from consumers and became one of the best-selling new RTD tea products this year. Success from continuous focuses on brands building and researches and developments of new products has resulted in number one market share of the Company in RTD tea market and Pure RTD green tea market with market share of 43% and 45.3% respectively and resulted in the receipt of "Thailand's Most Admired Brand Award 2016" in RTD tea product category from Brand Age magazine. The award was considered from nationwide consumers' opinions in several criteria including corporate image, brand image, distributors and employees, pricings, promotional campaigns and marketing communications. The award has proved us as number one brand in consumers' mind with products that continuously match evolving consumer trends and different needs.
Due to dedications and efforts of our management team and employees and the effective execution of business strategies, in 2016, the Company's net profit was 880 million Baht, an increase of 176 million Baht or 25.1% from previous year. Despite the fact that the comparison of the operating performances is the comparison of 9 months period versus 12 months period from the change in the Company's accounting period from January 1 and ending on December 31 of every year to October 1 and ending on September 30 of every year effective from 2016 onwards, in which 2016 fiscal year was consisted of 9 months, starting form January 1, 2016 and ending on September 30, 2016. In term of sales, the Company's total sales was 10,399 million Baht with net profit margin of 8.5% of total sales revenue increasing from 5.5% of total sales in previous year. As a result of improvement in operating performance in this year, in October 2016, TRIS Rating Co., Ltd. upgraded the Company's rating to A+, increasing by 2 notches from 2015's rating of A-, due to the Company's strong financial positions, robust business fundamentals and position as the leading producer of ready-to-drink (RTD) tea in Thailand with well-recognized brand and well perceived in consumers' mind, in which reflecting the Company's stability in financial profiles and market positions which serve as a strong foundation for future business expansions.
In order to optimize production efficiency and enhancing the Company's long run competitive advantages, the Company has implemented Cold Aseptic Filling Line 4 or CAF 4 at Wang-Muang production facility, Saraburi. Commercial operations are expected to started by December 2016 which will help ensure the Company's business strengths and serve expansions of our beverage brands' presences
On international expansions side, The Company continues to strive for success. To strengthen capital structure of international subsidiaries, share capital of Oishi International Holdings Limited and Oishi F&B (Singapore) Pte. Ltd. have been increased with main objectives to serve capital increase of Oishi Myanmar Limited, an indirect subsidiary in Myanmar to strengthen its working capital and serve as a solid foundations for future business expansion opportunities of food business.
Regarding corporate social responsibilities, the Company continued to grow our identity and continuing supports on CSR activities throughout our business processes and social, environmental aspects with focus areas on supporting educations, sports, nourishment of Thai cultural heritage and build morals to Thai youth.
On behalf of the Board of Directors, I would like to assure that management team and all employees are determined and dedicated to sustainably grow food and beverage business while maintain market leading position in both Japanese food and green tea beverage businesses via Thai Beverage Group's production and distribution strengths, which will enable us to continuously expand the businesses domestically and internationally. The results are well proven by our outstanding operating performances in 2016. Please be assured and put your kind trusts and supports to the Company's managements for the prosperity of the Company and shareholders.
Mr. Prasit Kovilaikool
Chairman