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ThaiBev Q2 net profit down 12% to 5.79b baht

THAI Beverage (ThaiBev) on Friday said second-quarter net profit fell 12 per cent to 5.79 billion baht from a restated 6.59 billion baht, due to a poorer showing in the spirits business, food business and F&N/Frasers Property.

Revenue rose 4 per cent to nearly 70 billion baht, helped by more sales in the beer business by 13.3 per cent, non-alcoholic beverages business by 9 per cent and food business by 10.5 per cent, though there was a decrease in sales of spirits business of 5.8 per cent.

Gross profit was 20.4 billion baht, an increase of 2 per cent.

By segment, the spirits business was also hit by an increase in advertising, promotion expenses and staff costs, which led net profit to shrink 12.2 per cent to five billion baht. The food business was hit by expenses from rapid new store openings, with revenue from new stores "still at early stage", the group said, so net profit for that segment fell 50.7 per cent to 102 million baht.

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The beer business registered a 60.4 per cent increase in net profit to 348 million baht due to higher sales and gross profit, increasing net profit by 60.4 per cent to 348 million baht.

The non-alcoholic beverages segment saw a net loss of 128 million baht, decreasing its net loss by 63.5 per cent.

The company was also hit by higher administrative expenses of 5 per cent to 4.08 billion baht, while finance costs also increased 50 per cent to 1.8 billion baht. This led operating profit to slip 2 per cent to 7.18 billion baht. 

ThaiBev's share of profit of investment in associates and joint ventures net of income tax fell 36 per cent to 675 million baht.

Net profit from F&N/FPL was at 465 million baht, down from 828 million baht in the year-ago period.

Earnings per share fell to 0.23 baht from 0.26 baht.

The company is paying out an interim dividend of 0.15 baht, with books closure on May 24 and payout date on June 7.

ThaiBev closed at S$0.825 on Friday, up 0.5 Singapore cent or 0.61 per cent before the results were announced.