“Beerco”, the beer business poised to be spun off for a separate listing by Thai Beverage Public Co, has reported revenue of $1.3 billion for the 1QFY21 period ended Dec, down 11.4% y-o-y.

However, due to better cost control, the entity was able to report higher earnings of $77 million, up 72.4% y-o-y from $45 million recorded in 1QFY20.

“Beerco” sells mainly in Thailand, under its flagship brand “Chang”. It is also active in Vietnam, via the “Saigon” brand.

For this IPO, Thai Bev plans to sell around 20% of “Beerco”, whose chairman is renowned former F&N CEO Koh Poh Tiong. The company’s CEO is Michael Chye Hin Fah.

According to ThaiBev, the spin off will create the largest beer “platform” in Asean, with a volume market share of 23.4% for FY2020. Heineken was second place with share of 22%.

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ThaiBev wants “Beerco” to have a sharper focus on growing the beer business with an “enhanced” corporate structure.

ThaiBev, besides selling beer, produces other alcoholic products such as whiskey, as well as non-alcoholic drinks and foodstuff too.

In the same period, ThaiBev reported a 5.1% drop in revenue to 71.8 billion Thai baht. Thanks to better cost control, the company’s earnings for the same period was held steady at 8.5 billion baht, up 0.5%.

Beerco owns three breweries in Thailand with a total capacity of 15.5 million hectolitres, with a utilisation rate of 51% utilization rate and a planned capex of $26.6 million in FY2021 and $11 million come FY2022. In Vietnam, Beerco owns or controlls the breweries. In FY2020, utilisation rate was 80%.

The company closed at 81 cents, down 2.42% on Feb 10.

See: ThaiBev reports 1% higher earnings of $375.2 mil in 1Q21 due to higher sales in spirits, beer and non-alcoholic beverages