The year 2023 was challenging in a different way for us and our peers in the industry. As the world slowly returned to normal in the year before, initially we all planned for further economic recovery, targetting sales growth and preparing accordingly for production and/ or service. The situation turned out to be much different, with the Thai economic growth decelerating following global economy. For the first time in two years the headline inflation became negative, although it was mainly an effect of government measure on electricity price and could be temporary. The household debt in Thailand, meanwhile, was at the highest level in ASEAN and could reduce the potential growth of household consumption in the future. The recovery had been dependent mainly on tourism as well as government measures to support on cost of living.
YUASA had; however, adjusted its strategy and plan to be in line with the situation while simultaneously maintaining the quality of product and improving further on production efficiency, and was able to deliver a positive result. In 2023, the margins of gross profit, operating profit, and net profit were all higher than in 2022 as a result of production cost reduction, with the sales revenue growth of 2.9 percent year-on-year. The Company had carried on with its strategy to retain and expand customer base and invested in machineries with the aim to achieve production target by using less resource. Besides, we consistently emphasized on creating safe and healthy environment internally and externally along with strengthening operational procedures and adhering to ethical conduct. The company kept focusing on ensuring proper ESG protocols, for example reducing climate impact and managing relationships with employees, suppliers, customers, and the communities where we operate.
In 2024 that the Thai economy is projected to recover by the suppport of tourism and goods exports recovery, we will look to continue on productivity improvement, not only in term of manufacturing process but also in our selling and administration operations. Technologies will be utilized more in order to reduce time and resources used and facilitate the flows of process. Innovation is also key to the growth and we will also put effort in creating new offerings for our customers. We remain committed in conducting business that can generate sustainable growth coupled with good corporate governance and management which in turn can create a long-term value for every stakeholder.
On behalf of the Board of Directors, I would like to reflect on the work of our executives and personnels who have demonstrated a level of commitment and dedication for which I am much grateful. And I would like to express gratitude to every shareholder, customer and stakeholder for the continued support and confidence in our business, and I look forward to continuing our partnerships for many years to come.
