Thai Bev full year net profit down 46%

THAI spirits maker Thai Beverage has posted a full year net profit of 18.53 billion baht (S$77 million) for 2018, down 46 per cent from last year, on the back of lower profits across its spirits, beer and non-alcoholic beverage businesses.

ThaiBev's basic and diluted earnings per share were 0.74 baht, down 46 per cent.

The company said that profits have been hampered by the slow economy and an increase in product prices after the implementation of higher excise tax rates at the end of 2017, as well as an elderly fund tax at the beginning of 2018, that reduced consumers' purchasing power, adversely affecting both the alcoholic and non-alcoholic beverage markets in Thailand.

Spirits sales revenue dipped 3.1 per cent due to lower domestic purchasing power and higher purchase orders from agents and retailers before the excise tax increase. Coupled with increases in advertising and promotion expenses as well as personnel expenses, the spirits business' net profit decreased 13.2 per cent year-on-year (y-o-y).

Net profit for beer also declined 10.4 per cent, weighed down by advertising and promotion expenses as well as personnel expenses, despite beer sales being boosted by Sabeco.

Likewise, the non-alcoholic beverages business saw net loss widen to 1,244 million baht, as sales revenue fell 3.5 per cent y-o-y.

The food business reported growth in sales revenue, driven by contributions from Spice of Asia and The QSR of Asia. Food revenue jumped 96.8 per cent and net profit surged from 104 million baht a year earlier to 554 million baht.

ThaiBev has declared annual dividends for 2018 of 0.39 baht per share, down from 0.67 in 2017.

Its counter closed up 2.29 per cent at S$0.67, before the results were announced.