The lower ebitda was due to the lower ebitda across the group’s segments – spirits, beer, non-alcoholic beverage (NAB) and food.

During the quarter, ThaiBev’s sales revenue increased by 4.9% y-o-y to 80.90 billion baht as all its segments, except spirits, grew on a y-o-y basis.

The spirits business saw sales revenue fall by 6.4% y-o-y to 33.7 billion baht as total sales volume fell by 15.2% y-o-y on a high base in the 1QFY2022. The high base was mainly due to the trade-inventory loading ahead of price increases.

Ebitda margin for the spirits business grew 1.5 percentage points to 26.5% y-o-y due to changes in the business’ portfolio mix. That said, the business reported an ebitda decline of 1% y-o-y to 8.92 billion baht

ThaiBev’s beer business reported a revenue increase of 13.7% y-o-y to 37.93 billion baht on the back of price increases, an improvement in its product mix and a 4.5% y-o-y increase in its total sales volume. The factors came on the back of the recovery in economic activity in Thailand and Vietnam.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/isdn-posts-113-lower-revenue-438-lower-net-profit-1hfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>ISDN posts 11.3% lower revenue, 43.8% lower net profit for 1HFY2023</a>

However, the beer business saw ebitda fall by 18.3% y-o-y to 3.68 billion baht due to the higher brand investment costs and marketing activities during the festive season. Cost push, which refers to the overall increase in prices on the back of higher wages and materials, also resulted in the y-o-y decline in ebitda.

ThaiBev’s NAB business saw revenue increase by 15.6% y-o-y to 4.61 billion baht in the 1QFY2023. This was lifted by a 7.1% y-o-y growth in sales volume as consumption improved after the Covid-19 pandemic. However, ebitda fell by 31.4% y-o-y to 409 million baht due to higher brand investment costs and marketing activities and general cost push. These were partly offset by a gain in production efficiency, says the group in its statement.

The group’s food business in the 1QFY2023 saw revenue increase by 24.0% y-o-y to 4.69 billion baht, which is in line with the higher dine-in traffic at restaurants. The group’s effort to increase brand penetration and accessibility also led to the revenue growth. Ebitda declined 4.0% y-o-y to 523 million during the quarter due to pre-operating costs incurred in conjunction with the opening of new stores and general cost push.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/southern-alliance-mining-reports-narrower-net-loss-rm08-mil-2hfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Southern Alliance Mining reports narrower net loss of RM0.8 mil for 2HFY2023</a>

As at Dec 31, 2022, cash and cash equivalents stood at 51.49 billion baht.

Its net interest bearing debt to equity ratio stood at 0.65x as at end-December.

Shares in ThaiBev closed flat at 70 cents on Feb 10.

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