ThaiBev 9M Ebitda up 11.5% to 36.6b baht

THAI Beverage Public Co Y92 : Y92 0% (ThaiBev) recorded 36.6 billion Thai baht (S$1.5 billion) in earnings before interest, taxes, depreciation and amortisation (or Ebitda) for the nine months ended June 2021, an 11.5 per cent increase from the year-ago period.

Revenue for the period went up 1.1 per cent year-on-year to 192 billion baht.

Despite restrictions brought on by the Covid-19 pandemic such as the temporary closure of entertainment venues and restaurants in Thailand, the group's spirits business logged a 9.5 per cent growth in Ebitda to 23.6 billion baht. This was driven by the strength of its product portfolio and expenses reduction in Thailand and Myanmar, ThaiBev said in a business update on Friday.

"The (spirits) business is proven to be resilient as a result of strong spirits product portfolio, with a variety of segmentation and off-premise consumption nature," ThaiBev said. In particular, it highlighted that business in Myanmar has remained strong due to its market shares in the whisky segment.

Ebitda for its beer business went up 20.4 per cent to 10.6 billion baht. ThaiBev attributed the improvement to its sales team's area management selling programme and "effective cost control measures". Total beer sales volume fell 1.1 per cent year on year, primarily due to tumbling sales for Sabeco, Vietnam's top beer producer. Nevertheless beer revenue for the period was up 1.2 per cent.

Non-alcoholic beverages recorded a 15.2 per cent increase in Ebitda to 1.6 billion baht, even as sales revenue was down 6.4 per cent year on year.

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When it came to food, Ebitda improved 2.9 per cent year on year to 773 million baht, even as sales revenue went down 12.9 per cent. Again, the group attributed these improvements to cost control measures in its restaurants as well as an initiative to help employees enhance productivity.

The group said it is focusing on delivery and takeaway options to "ride on the current situation", as dining-in is still constrained in many places.

ThaiBev shares closed flat at S$0.665 on Friday.