Thai Beverage reported Friday its fiscal second quarter net profit fell 8.6 percent to 6.76 billion Thai baht (S$291.97 million or US$214.33 million) on lower net profit from the spirits, food and F&N/FPL businesses.
That was partly offset by an increase in net profit from the beer business and a narrower loss form the non-alcoholic beverages business, Thai Beverage said.
Revenue for the quarter ended 31 March rose 3.6 percent on-year to 69.99 billion baht on higher sales in the beer, non-alcoholic beverages and food businesses, the company said in a filing to SGX after the market close.
“The beverage industry continued to expand in line with the overall Thai economy. Private consumption improved quarter-on-quarter, stimulated by campaigns ahead of the election in March,” ThaiBev said.
“On the back of declines in both agricultural prices and production however, farm income slightly contracted year-on-year,” it added.
Finance costs increased 50 percent on-year in the quarter to 1.85 billion baht, it said, adding that during the quarter, the company refinanced all bridging loans with floating interest rates to long-term loans with fixed interest rates.
The share of profit of investment in associates and joint ventures, net of income tax, dropped 36 percent on-year to 674.74 million baht in the quarter, Thai Beverage said.
The company proposed a dividend of 0.15 baht a share, unchanged on-year.
Spirits revenue falls
For the spirits business, sales revenue was 31.10 billion baht in the quarter, down 5.8 percent on-year, on lower domestic sales volumes due to the year-earlier period’s increased purchase orders ahead of the implementation of a tax, the filing said.
Net profit for the spirits segment fell 14.8 percent on-year to 5.15 billion baht amid an increase in advertising and promotion expenses and staff costs, ThaiBev said.
Beer net profit jumps
The beer business posted fiscal second quarter sales revenue of 30.69 billion baht, up 13.3 percent, which caused net profit to surge 69.1 percent on-year to 1.09 billion baht. Total sales volume of beer, including from Sabeco, in the quarter was 662.7 million liters, up 10.6 percent, ThaiBev said.
In the non-alcoholic beverages business, sales revenue rose 9.0 percent on-year to 4.46 billion baht, mainly on a shift in product mix, ThaiBev said. Carbonated soft drink sales volume rose 16.4 percent on-year, while sales volume of ready-to-drink tea increased 17.1 percent, it said.
The segment posted a net loss of 78 million baht, narrowing on-year, on lower advertising and promotion expenses and higher sales revenue, ThaiBev said.
In the food business, sales revenue rose 10.5 percent on-year in the quarter to 3.78 billion baht, mainly on higher revenue from QSA, ThaiBev said. But it added, the segment’s net profit fell 38.6 percent on-year to 83 million baht for the quarter, it said.
“This was mainly due to expenses from rapid new store openings while the revenue from new stores still at early stage,” ThaiBev said.
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