SINGAPORE (May 15): Thai Beverage reported a 3.2% fall in 2Q earnings to THB 6.3 billion ($263.5 million) from a year ago due to a decrease in attributable profit from its beer business and an increase in attributable loss from its non-alcoholic beverages business.
In 2Q18 ended March, group revenue rose 34.3% to THB 67.6 billion led by an increase in the sales revenue of spirits, beer, and food businesses although there was a decrease in sales revenue of non-alcoholic beverages business.
ThaiBev’s spirits business generated sales revenue of THB 33 billion, up 14.3% from last year. Sales volumes increased 17.7% when sales from the Grand Royal Group was included. Attributable profit was THB 5.7 million, an increase of 2.8% from a year ago.
The beer business recorded sales revenue was THB 27.1 billion, an increase of 74.4%. Total sales volume of beer including Sabeco’s beer was 579.6 million litres, an increase of 153.3%. Sales volume excluding Sabeco’s beer was 205.2 million litres, a decrease of 10.3%. Attributable profit was THB 307 million, a decrease 66.7%.
The company’s non-alcoholic beverage business generated sales revenue amounting to THB 4.1 billion in 2Q18, down 4.8% from last year, despite an increase in drinking water and carbonated soft drink sales volumes. Attributable loss widened 22.7% to THB 351 million.
The food business recorded sales revenue more than doubled to THB 3.4 billion. This was due to an increase in the number of Spice of Asia and the QSR of Asia restaurants. Attributable profit jumped more than sevenfold to THB 209 million.
At at March 31 total equity stood at THB 141.8 billion, an increase of 7% compared with the equity at the end of September 2017.
ThaiBev is recommending an interim dividend of THB 0.15 for the 1H18 ended March.
In its outlook, ThaiBev says a high level of household debt and a slow recovery in household income continued to suppress low income household expenditure.
In addition, farmer’s incomes were negatively impacted by a decrease in the prices of some agricultural products, making them cautious when it comes to spending.
Effective from Jan 26, all alcoholic beverages have been charged an additional 2% of excise tax in order to support the Elderly Fund. However, the impact of the excise take hike on the selling prices of alcoholic beverages was marginal.
Shares in ThaiBev closed 0.5 cent at 80 cents on Tuesday.