Thai Beverage reported Friday its fiscal year net profit rose 4.9 percent on-year to 27.34 billion baht, due to non-recurring expenses in the previous year and 2.66 billion baht of deferred tax utilization related to the beer business restructuring.
Net profit excluding non-recurring items declined 4.8 percent on-year to 27.34 billion for the 12 months ended 30 September, ThaiBev said in a filing to SGX.
Revenue from sales fell 5.1 percent on-year to 240.54 billion baht, the company said.
“This was due to a decrease in sales revenue of all business segments driven by Covid-19 situation, which was more severe than last year,” ThaiBev said.
“Thailand’s alcoholic and non-alcoholic beverage industry in 2021 contracted as a result of the containment measures such as the mandatory closure of entertainment businesses (pubs, bars, and karaoke outlets), and the prohibition of alcoholic beverage consumption in restaurants have inevitably affected the industry. However, beverages that are mostly consumed via off-trade channels, such as spirits, were not significantly affected,” the Chang beermaker said.
ThaiBev declared a 0.35 baht dividend, for a total annual dividend of 0.5 baht, compared with the previous year’s 0.36 baht dividend, for a total dividend of 0.46 baht.
The spirits business posted sales revenue of 115.05 billion baht, down 1.9 percent on-year, with lower sales volume, and net profit of 22.14 billion baht, down 0.6 percent on-year, mainly on increased depreciation and amortization, partly offset by lower advertising and promotion expenses and lower rental expenses.
“The company’s spirits business remained resilient in FY2021, despite the closures of entertainment venues and restaurants, as spirits are mostly consumed via off-trade channels,” ThaiBev said.
The beer business reported full year sales revenue of 99.16 billion baht, down 7.2 percent, as beer sales volume fell, while net profit for the segment fell 11.4 percent on-year to 400 million baht.
The non-alcoholic beverages business posted sales revenue for the year of 15.21 billion baht, down 6.6 percent on-year amid a decrease in sales volume of carbonated soft drinks, drinking water and ready-to-drink tea.
Net profit from the segment was 458 million baht for the year, down 30.2 percent, partly due to a year-earlier one-time payment of 293 million baht from a damage insurance claim, the filing said.
Net profit from normal operation rose 51 percent on-year to 548 million baht, on cautious cost management by reducing advertising and promotion expenses and controlling administrative expenses, the filing said.
The food business reported full fiscal year revenue of 11.28 billion baht, down 14.4 percent on-year, contributing only 4.7 percent of full-year revenue on the impact of the Thai government’s measures to contain the spread of Covid-19, including restaurant closures in shopping malls and prohibiting dine-in services.
“However, KFC, as franchisee, remained stable driven by sales from stores outside shopping malls, strong growth of delivery sales, and expansion into new channels such as food trucks which penetrate into areas that are more convenient to consumers,” ThaiBev said.
The segment posted a net loss of 488 million baht, compared with a 38 million baht loss in the year-earlier.
ThaBev said the international business’ sales revenue for the year was 57.39 billion baht, down 8 percent on-year, mainly on an 11 percetn decline in Vietnam beer sales following a lockdown and strict social distancing measures there.