ThaiBev Q1 revenue up 7.4 per cent as Covid-19 situation improves

Thai Beverage Public Company (ThaiBev) said on Monday (Feb 14) that it recorded an increase in sales revenue for its first quarter ended Dec 31, 2021, as the improving Covid-19 situation in Thailand drove sales growth in all business segments.

In a business update on Monday (Feb 14), the group said that revenue for the 3-month period was up 7.4 per cent to 77.1 billion Thai baht (S$3.2 billion).

Earnings before interest taxes, depreciation and amortisation (Ebitda) for the period was also 1.6 per cent higher year-on-year, at 14.7 billion Thai baht.

ThaiBev said this was underpinned by "satisfactory improvements" in Ebita from the beer, non-alcoholic beverage and food businesses.

The group's spirits business recorded a 3.6 per cent year-on-year increase in sales revenue to 36 billion Thai baht for the quarter, as sales volume rose 8.6 per cent.

While entertainment venues in Thailand remained closed due to Covid-19-restrictions, ThaiBev said the spirits business remained resilient, underpinned by a "strong and well-diversified" spirits portfolio and the off-premise consumption nature.

The segment's Ebitda, however, was down 2.3 per cent, due to higher raw material costs in the first quarter, but ThaiBev said the outlook for the raw material cost of molasses in the current season is likely to be lower year-on-year.

Sales revenue for the group's beer business was up 10.4 per cent on year to 33.4 billion Thai baht in the first quarter, driven by recovery in economic activity in Vietnam and a price increase there. The beer business saw Ebitda rise 4.5 per cent to 4.5 billion Thai baht.

Both the non-alcoholic beverages and food business segments also recorded increases in sales revenue, reaching 4 billion Thai baht, and 3.8 billion Thai baht respectively, with Ebitda from both segments also growing.

For the quarter, Thaibev reported a 6.9 billion Thai baht increase in cash and cash at financial institutions from the previous quarter, taking the total cash and cash at financial institutions to 45.2 billion Thai baht as at end-Dec 2021.

The group's total assets rose marginally to 472.8 billion Thai baht, while total liabilities fell 2.2 per cent to 256.6 billion Thai baht.

ThaiBev's shares closed unchanged on Monday at S$0.66, before the business update.