ThaiBev full-year profit dips 2% to 22.75b baht

Singapore

THAI Beverage Public Co (ThaiBev) reported a 2 per cent dip in net profit to 22.75 billion baht (S$1 billion) from 23.27 billion baht for the full year ended Sept 30, 2020, dragged by the overall contraction in the beverage industry due to Covid-19 prevention measures.

The board has proposed a final dividend of 0.36 baht per share. Taken with the interim dividend of 0.10 baht paid, this will give a total distribution of 0.46 baht per share for fiscal year 2020, down from 0.48 baht previously. The final dividend will be paid on Feb 25, 2021.

Revenue fell 5.2 per cent to 253.48 billion baht from 267.36 billion baht a year earlier due to a decrease in sales revenue from the beer, non-alcoholic beverages (NAB) and food business segments, though it was partially mitigated by an increase in sales of spirits.

Sales in the spirits business rose 2.2 per cent, the beer segment fell 11.3 per cent while the NAB and food segments dropped 3.1 per cent and 15.4 per cent respectively.

Bottom line from the food business took the biggest hit. It recorded a net loss of 38 million baht despite cost control measures and rent relief negotiations.

Net profit for the group's spirits business rose 15.4 per cent to 21.94 billion baht while beer slipped 13.5 per cent to 825 million baht. The NAB business turned around last year's loss and made a net profit of 306 million baht.

Earnings per share stood at 0.91 baht from 0.93 baht.

ThaiBev said in its financial statement that Thailand's alcoholic and non-alcoholic beverage industry in 2020 contracted due to the impact of the Covid-19 prevention measures, which led to the closure of important sale channels. There was also a a ban on the sale of alcoholic beverages from April to early May.

"The contraction in the beverage industry was exacerbated by weak consumer purchasing power amid the uncertain economic environment," said ThaiBev.

Still its spirits segment remained resilient due to the off-premise consumption nature of it.

Beers, on other hand, relied more on on-premise consumption, which led to some impact from the temporary closure of entertainment venues and restaurants.

On the NAB front, ThaiBev continued to prudently manage its costs by reducing advertising and promotion expenses.

Following the easing of Covid-19 prevention measures, ThaiBev said that recovery is underway for the domestic beverage industry. This has led to sales improvement in the final quarter for FY20.

Shares of ThaiBev ended Wednesday at S$0.72, down S$0.01 or 1.4 per cent.