Thai Beverage reports fiscal year net profit climbed 33 percent

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

Thai Beverage reported Friday its full year net profit climbed 33 percent on-year to 26.08 billion baht on increases in net profit from the spirits and beer businesses and from F&N/FPL, as well as on a narrower net loss from non-alcoholic beverages.

UOB KayHian had forecast net profit of around 25.14 billion baht in an October note.

Profit attributable to the owners of the company for the year increased 30 percent on-year to 23.27 billion baht, the beverage maker said in a filing to SGX.

Total revenue for the year ended 30 September increased 16 percent on-year to 267.36 billion baht, the Chang Beer maker said.

“Thailand’s domestic alcoholic and non-alcoholic beverage industry improved in 2019 due to the increase in domestic demand,” Thai Beverage said.

“This is partly because of stimulus measures, such as the state welfare smartcards to assist low-income earners, loans for farmers affected by droughts, the income guarantee scheme for farmers, low-rate mortgage loans via Government Housing Bank,and the Chim Shop-Chai (Eat-Shop-Spend) program, which have helped to boost consumer purchasing power,” it added.

Thai Beverage declared a final dividend of 0.33 baht a share, up from 0.24 baht for the previous year, bringing the total dividend for the year to 0.48 baht, up from 0.39 baht a year earlier.

Spirits business

The spirits business posted sales revenue of 115.04 billion baht for the fiscal year, up 8.6 percent on-year, on increased domestic demand, while net profit rose 10.4 percent on-year to 19.57 billion baht.

Total sales volume of spirits including Grand Royal Group’s spirits was 666.5 million liters, up 8.9 percent on-year, while total sales volume of soda was 54.0 million liters, an increase of 11.5 percent, ThaiBev said.

Beer

The beer business posted sales revenue of 119.60 billion baht, up 26.6 percent on-year, while net profit rose 50 percent to 3.15 billion baht.

Total sales volume of beer including Sabeco’s beer was 2.7 billion liters, up 31.0 percent on-year, ThaiBev said.

“This is in line with the recovery of consumer purchasing power,” the company said.

Non-alcoholic beverages

Non-alcoholic beverages posted sales revenue increased 7.5 percent on-year to 17.39 billion baht, while the segment’s net loss narrowed to 1.03 billion baht, down by 218 million baht on-year.

Total sales volume was 1.74 billion liters, 5.4 percent, with drinking water sales volume up 3.5 percent, carbonated soft drink sales volume up 16.4 percent and ready-to-drink tea sales volume up 9 percent, the filing said.

However, sales volume of Jubjai fell 20.8 percent and 100Plus fell 12 percent, ThaiBev said.

Food business

The food business posted sales revenue of 15.56 billion baht, up 17.3 percent, mainly on higher contributions from Oishi food and the QSR of Asia Co.

But net profit for the segment dropped 14.5 percent on-year to 80 million baht for the year, mainly on higher finance costs and depreciation, ThaiBev said.

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