ThaiBev Q2 net profit up 19.7% to 5.93b baht

THAI Beverage Public Co (ThaiBev) on Friday reported a second-quarter net profit of 5.93 billion baht (S$252.3 million), up 19.7 per cent from 4.95 billion baht the previous year, led by gains from the spirits and beer segments.

The board has declared an interim dividend of 0.15 baht to be paid on June 11.

Despite the improvement in net profit, Thailand's beverage industry experienced a decline for the first three months of the year, said the company.

This is as measures such as the mandatory closure of entertainment businesses (pubs, bars, and karaoke outlets) and the prohibition of alcoholic beverage consumption at restaurants have inevitably affected the industry. The resurgence of Covid-19 cases has also raised safety concerns among consumers about dining out and drinking at restaurants, said ThaiBev.

For the three months ended March 31, 2021, revenue dipped 3.2 per cent to 59.46 billion baht from 61.41 billion baht over the same period last year, attributable to a drop in sales in its spirits and non-alcoholic beverages (NAB), and food segments, which offset the improvement from the sales of beer.

Sales in the spirits business fell 2.5 per cent while the NAB and food segments shed 13.2 per cent and 20.7 per cent respectively. Sales from its beer business edged up 0.4 per cent.

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Bottom line from the food business took the biggest hit. Its net loss of widened to 96 million baht from 11 million baht.

Net profit for the group's spirits business rose 4.3 per cent to 5.50 billion baht while beer turned around last year's loss of 100 million baht to make a net profit of 58 million baht.

Net profit for the NAB segment fell 43.9 per cent to 133 million baht from 237 baht a year earlier, due to a non-recurring item of an insurance claim on property damaged from the fire incident at Oishi beverage factory in Q2 2020.

Earnings per share for the quarter was 0.24 baht, up from 0.20 baht previously.

For the half year ended March 31, 2021, net profit rose 7.6 per cent to 14.40 billion baht due to an increase in net profit of spirits and beer business, as well as last year's non-recurring costs and deferred tax utilisation related to the restructuring of its beer business.

Revenue dipped 4.3 per cent to 131.25 billion baht due to a decrease in sales revenue from all business segments.

Earnings per share for the half year was 0.57 baht versus 0.53 baht a year earlier.

Shares of ThaiBev ended Friday at 67 Singapore cents, down 2.5 cents or 3.6 per cent.