ThaiBev reports fiscal 9M21 ebitda rose nearly 12 percent despite Covid impact

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

ThaiBev reported Friday earnings before interest, taxes, depreciation and amortisation (ebitda) for fiscal nine month period increased 11.5 percent on-year to 36.64 billion baht on improved performances from the spirits, beer and food businesses.

Revenue for the nine months ended 30 June edged up 1.1 percent on-year to 192.12 billion baht amid a continued impact from the Covid-19 pandemic, the Chang beermaker said in a filing to SGX.

Spirits

The spirits business proved resilient, posting sales revenue of 91.63 billion baht, up 3.6 percent on-year, and ebitda of 23.61 billion baht, up 9.5 percent on-year, with sales volume up 4.2 percent, ThaiBev said, noting selling expenses declined.

“Although there were Covid-19-related measures such as the temporary closure of entertainment venues and restaurants in Thailand, the business is proven to be resilient as a result of strong spirits product portfolio with variety of segmentation and off-premise consumption nature,” ThaiBev said. “Our spirits business performance in Myanmar remained stable due to our strong brand and market shares in whisky segment, and the company believes that the business in Myanmar remains solid and continue to generate strong positive cashflow.”

Beer

The beer business reported sales revenue for the nine-month period increased 1.2 percent on-year to 80.27 billion baht, while ebitda increased 20.4 percent on-year to 10.63 billion baht.

ThaiBev attributed the improvement to the sales team’s area management selling program to drive volume growth and effective cost control measures, despite lower sales volume and the ongoing closure of Thailand’s entertainment venues and restaurants.

Non-alcoholic beverages

The non-alcoholic beverage (NAB) business reported nine-month sales revenue fell 6.4 percent on-year to 11.69 billion baht, while ebitda declined 4.6 percent on-year to 1.63 billion baht.

“The NAB business continued to prudently manage its costs, thereby reducing advertising and promotion expenses,” ThaiBev said.

Food

The food business reported nine-month sales revenue fell 12.9 percent on-year to 8.65 billion baht due to restrictions on dining-in at restaurants and other food outlets, while ebitda increased 2.9 percent on-year to 773 million baht on cost-control measures and efforts to improve employee productivity.

“In order to cope with the challenging business environment during Covid-19 for food segment, the team has put more focus on take away
and home delivery channels to ride on the current situation opportunities, while dine-in is still limited,” ThaiBev said.