THAI Beverage Public Co (ThaiBev) saw its earnings before interest, taxes, depreciation, and amortisation (Ebitda) fall 3.4 per cent to 37.8 billion Thai baht (S$1.45 billion) for the nine months ended Jun 30, 2023, from 39.1 billion baht in the previous corresponding period. (see *Amendment note)

This is despite the food and beverage company having recorded a 3.8 per cent rise in sales revenue to 215.9 billion baht, from 207.9 billion baht in the year-before period.

The group’s Ebitda performance takes into account the improvement in revenue, higher brand investment and cost pressures, it said in a business update on Wednesday (Aug 9) night.

Its spirit business logged a 3.3 per cent increase in sales revenue to 93.7 billion baht, despite total sales volume having fallen 3.5 per cent from the level in the previous corresponding period. Overall, the segment’s Ebitda was up 6.2 per cent to 23.8 billion baht.

The sales revenue for its beer business nudged up 0.7 per cent to 93.3 billion baht during the period, though total sales volume fell 5.2 per cent. An increase in brand investment, marketing activities and competitive pressures, coupled with rising key raw material and packaging costs sent Ebitda for the segment down by 19.8 per cent to 10.8 billion baht.

The non-alcoholic beverages business recorded a 15.6 per cent rise in sales revenue to 14.8 billion baht, lifted by an 8.7 per cent increase in sales volume amid improved consumption. The segment’s Ebitda rose 3.3 per cent to 1.8 billion baht for the period.

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ThaiBev’s food business’ sales revenue grew 19.2 per cent to 14.3 billion baht, in line with the rise in dine-in traffic at restaurants, said the company. But Ebitda for the segment declined 8.4 per cent to 1.4 billion baht, after factoring in pre-operating costs incurred with the opening of new stores, cost push factors, and higher operational and administrative costs.

The company said that its financial position remains robust with strong free cash flow.

Shares of ThaiBev closed flat at S$0.57 on Tuesday.

*Amendment note: An earlier version of the article wrongly reported on ThaiBev’s Ebita performance, when it should be Ebitda.