Sustainability

MESSAGE FROM THE CHAIRMAN

Dear Shareholders

The year 2024 has been a period of remarkable growth and transformation for CP Axtra Public Company Limited (“the Company”). Amidst a rapidly evolving economic landscape and shifting market demands, we have remained steadfast in our commitment to continuous innovation, adaptation, and operational excellence. The Company views these challenges as opportunities to redefine products and services through technological advancements and innovation. Over the past year, we have executed a comprehensive growth strategy, encompassing diverse store formats while simultaneously enhancing out-of-store sales, reinforcing our position as a leader in retail and wholesale tech. These efforts have not only strengthened our competitive edge but also laid the foundation for long-term, sustainable value creation.

A cornerstone of our strategy is our ability to leverage data-driven insights to enhance customer experiences. The Company continues to integrate AI-driven business intelligence and advanced data analytics to precisely understand and anticipate customer preferences. We are committed to offering high-quality, great value, healthy, and eco-friendly products and expanding the private label participation mix, driving higher sales and improving gross profit margins, as well as increasing brand loyalty.

Digital transformation remains at the heart of our business evolution. Through significant investments in advanced digital infrastructure, we have elevated customer interactions and streamlined operations. The adoption of AI-driven Hyper-Personalization and Micro-Segmentation has enabled us to enhance our online platforms, providing seamless, intuitive, and personalized shopping experiences. This customer-centric approach has resulted in higher engagement and retention rates across all channels, reinforcing our omnichannel capabilities.

A key priority for the Company is to enhance asset value and deliver sustainable returns for our shareholders. To achieve this, we strategically invest in high-potential locations, both in major urban centers and potential growth areas, strengthening our competitive edge. By differentiating store formats and sizes, we ensure that our retail spaces are tailored to meet the unique demands of each community, transforming them into a smart community center that seamlessly integrates into modern lifestyles and serves all generations. In parallel, we adopt a balanced approach between self-operated businesses and strategic partnerships in industries that require specialized expertise. This model allows us to optimize returns while mitigating risks.

A defining moment in early October 2024 was the successful completion of the amalgamation between Makro and Lotus’s in Thailand, marking a transformational milestone in strengthening our organizational capabilities. This amalgamation is designed to add synergy value, enhance efficiency, cost optimization, and eliminate operational redundancies. While creating new opportunities to drive higher returns and enhanced business performance.

Beyond financial performance, sustainability remains a core pillar of our corporate strategy. The Company has been recognized by multiple global and national institutions for Environmental, Social, and Governance performance. Notably, in 2024, we achieved an S&P CSA Global Score of 84/100, ranking 4th in the Food & Staples Retailing industry, reflecting our strong progress and unwavering commitment to responsible business practices. Our sustainability efforts extend beyond compliance; we are proactively working to reduce environmental impact, drive economic and social contributions, and uphold the highest standards of corporate governance.

On behalf of the Board of Directors and Executive Committee, I extend my heartfelt gratitude to our shareholders, partners, and stakeholders for your unwavering trust and support. I also wish to express my sincere appreciation to our employees and leadership team for their dedication and perseverance throughout the year. Lastly, the Board of Directors, the executives, and I would like to assure you that the Company will firmly commit to conducting the business to pursuit sustainable growth for the nation, the community, and all groups of the Company stakeholders.