In light of the satisfactory operating performance for the year 2018 and the solid financial position of the Company, the Board of Directors resolved to recommend a full year dividend of Baht 2.50 per share (2017: Baht 2.30). As an interim dividend of Baht 1.20 per share was already paid by the Company to shareholders during the year, the final dividend of Baht 1.30 per share, subject to the shareholders’ approval at the 2019 Annual General Meeting, will be paid on May 23, 2019 to shareholders who are eligible to receive dividend.

Mr. Rit Thirakomen

Chairman and Chief Executive Officer

Dear Shareholders,

On behalf of the Board of Directors, I am delighted to report that the Company continued to deliver another good operating performance for the year 2018 despite the challenging operating environment resulting from the rapid changing market trends and customer expectations, the threat from the rapid digital transformation which may affect the business of the Company, and the slowdown of the Thai economy in the second half of 2018 as a result of the eruption of the US-China trade conflict and the plunge in Chinese tourist arrivals following the July tour boat accident in Phuket. Our achievement of consistent good operating results is due largely to the strength of our brands, the dedication and commitment of our employees to deliver the best possible service to customers, the continuing improvement on the taste and quality of our food, and the continuing focus on prudent cost control and operating efficiency. In addition, the Company continued to expand its restaurant network in order to sustain our long term growth as well as to maintain our market leadership. In 2018, the Company opened a total number of 47 new restaurant outlets consisting of 20 MK and MK LIVE Sukiyaki restaurants, 20 Yayoi Japanese restaurants, and another 7 restaurants operated under other brands. I am also pleased to announce that of these newly opened restaurant outlets, four of which are operated under a new format and new brand called “Bizzy Box”. Bizzy Box is a takeaway style restaurant offering hot and ready to eat meals which proved to be well accepted by customers since its launch in July 2018.

In terms of financial performance, revenue from sales and services grew 4.3% to Baht 16,770 million in 2018, while total revenue rose 4.7% to Baht 17,234 million in 2018 largely as a result of gain from disposal of fixed assets. Net income, meanwhile, amounted to Baht 2,574 million in 2018 representing an increase of 6.1% which is higher than the growth rate of total revenue. Earnings per share for 2018 amounted to Baht 2.79, compared with Baht 2.65 for 2017.

In 2018, the Company has made an important strategic move to expand its business by establishing a joint venture company called M-Senko Logistics Company to engage in the business of logistics and warehousing. It is roughly a 50:50 Joint venture between MK Restaurant Group and Senko Group Holdings Company with a registered and fully paidup capital of Baht 1,300 million. Senko Group Holdings is the second largest logistics service provider in Japan with special expertise in cold chain logistics. M-Senko started its commercial operations in July 2018 by providing initially logistics services to the Company. It plans to provide logistics and warehousing services to outsiders in the near future. We believe that with the combined strengths of the joint venture partners, M-Senko will be able to grow and achieve its expected operating result in the near future thereby creating additional value to shareholders.

In recognition of the Company’s achievements in its outstanding management excellence practices, the Company was awarded several awards for excellence in 2018 as follows:

  1. Thailand Corporate Excellence Awards 2018 in the areas of Innovation Excellence from Thailand Management Association (TMA).
  2. The Most Powerful Brand of Thailand 2018 in the category of Chain Restaurant for the fourth consecutive time organized by the Faculty of Commerce and Accountancy, Chulalongkorn University in every two years.
  3. No. 1 Brand Thailand 2017-2018 in the category of Chain Restaurant from Marketeer Magazine.

"In light of the satisfactory operating performance for the year 2018 and the solid financial position of the Company, the Board of Directors resolved to recommend a full year dividend of Baht 2.50 per share (2017: Baht 2.30). As an interim dividend of Baht 1.20 per share was already paid by the Company to shareholders during the year, the final dividend of Baht 1.30 per share, subject to the shareholders’ approval at the 2019 Annual General Meeting, will be paid on May 23, 2019 to shareholders who are eligible to receive dividend."

Looking forward to the year 2019, despite the external headwinds arising from the anticipated decline in global economic growth, the US-China trade tensions, rising interest rates, and the Brexit uncertainty, it is expected that the Thai economy can still continue to grow, albeit at a slightly slower pace of 4.0% in 2019 (2018: 4.1%) driven largely by domestic consumption, private and public investments, and the recovery of tourism. Based on the expected positive economic growth momentum as aforementioned, we are confident that with the support of the strong reputation of our brands, the robust and efficient infrastructure, and the dedicated, capable and experienced management team while maintaining our focus on enhancing our customers’ value and dining experiences, we will be able to sustain our successful operating track record in 2019 as well as create even greater value for our shareholders in the years ahead.

Last but not least, on behalf of the Board of Directors of the Company, I wish to take this opportunity to thank our staff for the loyalty, commitment and hard work, our shareholders for their support and encouragement for our constantly growing business, and our customers who have reposed great trust in us and our service and product offerings over the years.