ThaiBev full-year net profit up 29.7% at 23.3b baht
Results lifted by stronger showing from spirits business, F&N and Frasers Property
Singapore
THAI Beverage's (ThaiBev) full-year net profit swelled 29.7 per cent to 23.3 billion baht (S$1.1 billion), lifted by a stronger showing from its spirits business and its mainboard-listed units, Frasers & Neave (F&N) and Frasers Property (FPL).
The board has proposed a final dividend of 0.33 baht per share. Taken with the interim dividend of 0.15 baht paid, this will give a total distribution of 0.48 baht per share for fiscal 2019, up from 0.39 baht previously.
The final dividend will be paid on Feb 28, 2020.
Year-on-year, net profit for the group's spirits business rose 12.9 per cent to 19.2 billion baht while net profit for F&N/FPL soared by 31 per cent to 3.9 billion baht.
ThaiBev's bottom line was further helped by its non-alcoholic beverage business, which narrowed its net loss by 20.8 per cent to one billion baht.
This was mainly due to a rise in gross profit and Ebitda (earnings before interest, tax, depreciation and amortisation), though there was an increase of corporate income tax due to the use of deferred tax liabilities, said the group in a filing on Friday.
The improved performance from these segments had more than offset the 36 per cent and 19.5 per cent decline in net profit for its beer business and food business respectively, mainly due to an increase in finance costs. There was also a 2.5 billion baht deferred tax liability from the restructuring of its food business.
Revenue grew 16.4 per cent to 267.4 billion baht from 229.7 billion baht a year earlier. This was driven by an increase in sales across the spirits (up 8.6 per cent), beer (up 26.6 per cent), non-alcoholic beverages (up 7.5 per cent) and food (up 17.3 per cent) businesses.
ThaiBev's overall domestic beverage sales "showed signs of recovery", in part backed by the Thai government's stimulus measures which have "helped to boost consumer purchasing power", said the group.
These measures include state welfare 'smartcards' to assist low-income earners, loans for farmers affected by droughts, an income-guarantee scheme for farmers, low-rate mortgage loans via the Government Housing Bank, and the Chim Shop-Chai (Eat-Shop-Spend) programme.
Gross profit increased by 15.9 per cent to 77.4 billion baht, up from 66.8 billion baht previously. Earnings per share stood at 0.93 baht, up 31 per cent from 0.71 baht.
ThaiBev shares fell two cents to S$0.89 on Friday before the results were announced.
