Singapore’s Big Loser for the Week: Thai Beverage Public Company Limited

Thai Beverage Public Company Limited (SGX: Y92) has fallen by 8.6% since last Friday to close at S$0.695 yesterday. With the Straits Times Index (SGX: ^STI) flat during the same time period, Thai Beverage has certainly been a big loser for the week.

The maker of Chang Beer released its third quarter results on 14 November 2014. Revenue for the quarter notched up 0.7% year-on-year to THB 35.3 billion while net profit slumped by 8.8% to THB 3.7 billion.

The slight uptick in revenue was due to an increase in sales from Thai Beverage’s beer, non-alcoholic beverages, and food businesses. A decrease in sales from the spirits business had partially offset the top-line growth elsewhere.

Meanwhile, Thai Beverage’s bottom-line was affected by a decrease in net profit from its spirits and food businesses, and a higher loss from its non-alcoholic beverages business. A drop in profit from Fraser and Neave Limited  (SGX: F99), a subsidiary of Thai Beverage, had also weighed down on the company’s overall bottom-line. The only bright spot was the beer business, which actually grew its profit.

Although the latest quarterly performance from Thai Beverage isn’t the best, a look at the firm’s results over a longer time-frame actually shows a different picture. For the nine months ended 30 September 2014, Thai Beverage’s revenue went up from THB 111 billion to THB 116.3 billion, an increase of 4.8%. The company’s bottom-line did even better as net profit grew by 22.1% to THB 15.2 billion.

The revenue growth was led by an increase in sales from the company’s spirits, beer, and food businesses. Again, it was the non-alcoholic beverages business which was the laggard as sales from there declined. Growth in profit from Thai Beverage’s beer business for the first nine months of 2014 had played a huge role in the company’s total profit growth; in that period, the beer business’s net profit ballooned by 206%.

In other non-earnings related news with Thai Beverage, the company was dealt a blow this month as news broke that Fraser and Neave has to give up its stake in the fast growing Myanmar Brewery, the brewer of Myanmar Beer.

Thai Beverage is currently going at around 20 times its historical earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P does not own any companies mentioned above.