UPDATE: Thai Beverage reports fiscal 3Q net profit climbed 26 percent

Chang Beer, made by Thai BeverageChang Beer, made by Thai Beverage

This article was originally published on Wednesday, 14 August 2019 at 20:14 SGT; it has since been updated to include more details.

Thai Beverage reported Wednesday its fiscal third quarter net profit climbed 26 percent on-year to 7.66 billion baht (S$344.90 million or US$248.38 million) amid higher contributions from the food, beer and spirits segments.

Attributable profit to shareholders was 6.65 billion baht, up 21 percent on-year, Thai Beverage said.

Total revenue for the quarter ended 30 June rose 3 percent on-year to 62.66 billion baht on increased sales of spirits, non-alcoholic beverages and food, the Chang beer maker said in a filing to SGX.

That was offset by declines in sales in the beer business, Thai Beverage said.

“During April–June 2019, the Thai economy expanded at a slower pace as a result of a contraction in export and manufacturing, and a slowdown in tourism sector. However, overall domestic demand and government spending continued to expand,” Thai Beverage said.

“Food and beverage industry improved following the increase in domestic demand, together with the new product development and packaging sizes adjustment strategy by beverage producers to expand the reach to target consumers,” the company added. “The increase in purchasing power came from real farm income which was risen slightly from the same period of last year.”

Spirits

The spirits business posted third quarter sales revenue of 26.27 billion baht, up 6.9 percent on-year, as total sales volume, including MDC’s spirits, was 145.5 million liters, up 2.1 percent.

Net profit for the segment increased 11 percent on-year to 4.46 billion baht on higher sales, offset by higher advertising and promotion expenses and costs for employee benefits, Thai Beverage said.

Beer

The beer segment posted sales revenue of S$28.19 billion baht for the quarter, down 0.3 percent on-year, as total sales volume, including Sabeco, was 665.6 million liters, down 1 percent.

Net profit for the segment was 1.19 billion baht, up 32 percent on-year, mainly on a lower cost of sales and lower advertising and promotion expenses, offset by higher employee benefit costs, the filing said.

Non-alcoholic beverages

The non-alcoholic beverage business posted sales revenue of 4.25 billion baht for the quarter, up 0.5 percent on-year, mainly on product mix. Total sales volume for the segment was 477.6 million liters, up 10.6 percent on-year, the filing said.

Carbonated soft drink sales volumes rose 24.2 percent on-year, ready-to-drink tea volumes grew 18.9 percent and drinking water volumes increased 7.4 percent, while Jubjai sales volumes fell 19.7 percent and100Plus volumes fell 25 percent, the filing said.

The segment’s net loss was 134 million baht, narrower than the year-ago net loss of 153 million baht on higher sales revenue and lower cost of sales, ThaiBev said.

Food business

The food business reported sales revenue of 4.05 billion baht, up 11.8 percent on-year, mainly on higher revenue form Oishi food and QSA.

Net profit for the segment rose 270.5 percent on-year to 163 million baht on the higher sales, the filing said.

For the nine-month period, Thai Beverage reported net profit rose 34 percent on-year to 19.86 billion baht on total revenue of 205.28 billion baht, up 18 percent on-year.

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