MAINBOARD-LISTED Thai Beverage : Y92 0% (ThaiBev) on Wednesday (Feb 14) said its sales revenue for the first quarter ended Dec 31, 2023 fell by 5.9 per cent to 76.1 billion baht (S$2.8 billion) from 80.9 billion baht year on year.

However, its earnings before interest, taxes, depreciation and amortisation (Ebitda) rose by 1.9 per cent to 13.8 billion baht, from 13.5 billion baht in the corresponding year-ago period, as a result of “effective cost management”, the beverage group said in a business update.

The lower revenue came as the group’s beer segment revenue declined 14 per cent to 32.6 billion baht, from 37.9 billion baht in Q1 FY2023, on the back of sales volume falling by 15 per cent and a slower-than-expected economic recovery in Thailand and Vietnam.

The segment’s Ebitda grew 2.1 per cent on-year to 3.8 billion baht from 3.7 billion baht, on account of lower raw material and packaging costs, and “prudent cost management”.

Its spirits business’ revenue was 33.9 billion baht, inching up 0.5 per cent from 33.7 billion baht on year. Ebitda for the segment gained 1.4 per cent to 9 billion baht, from 8.9 billion, largely on a robust performance by the spirits business in Myanmar.

The group said its spirits business “remained resilient with stable sales revenue”.

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Its non-alcoholic beverages recorded a 1.6 per cent revenue increase to 4.7 billion baht, from 4.6 billion baht. Ebitda for the segment also climbed, up 9.8 per cent to 449 million baht, from 409 million baht, on higher production efficiency and lower packaging costs.

Revenue for the food business expanded 5.9 per cent to 5 billion baht, from 4.7 billion on year. This was attributed to greater brand visibility and accessibility through new stores, new price tiers and promotions, said ThaiBev.

The food business’ Ebitda for Q1 FY2024 therefore increased 3.4 per cent to 541 million baht, from 523 million baht in Q1 FY2023.

The group noted it had achieved Ebitda growth in all business segments, despite a decline in revenue, and that its financial position remained robust, bolstered by “strong free cash flow”.

Its net cash from operating activities was 10.9 billion baht for Q1 FY2024.

Its cash and cash equivalents as at Dec 31, 2023, stood at 47.7 billion baht, up from 45.7 billion baht as at Sep 30 last year.

Shares of ThaiBev finished up S$0.005 or 1 per cent at S$0.495, before the update.