5 Useful Things For Investors To Learn About Thai Beverage Public Company Limited

Thai Beverage Public Company Limited  (SGX: Y92) is one of the cool companies in Singapore that shares webcasts and/or transcripts of their earnings presentations

There may be useful and important information that investors can learn from the webcasts and transcripts.

A few weeks ago, Thai Beverage had released its fiscal first-quarter earnings (for the three months ended 31 March 2016). I had spent time watching the webcast of Thai Beverage’s earnings presentation and came away with five things that may be important for investors to note.

But first, here’s a quick background on Thai Beverage. The company may be best known in Singapore as the brewer of the Chang brand of beers. Geographically, Thai Beverage’s business is done mainly in Thailand. The firm has four major business segments, namely Spirits, Beer, Non-alcoholic Beverages, and Food.

With that, here are my notes:

  1. The briefing kicked off with a quick reminder: Thai Beverage will be transitioning from a fiscal year that ends on 31 December to a fiscal year that ends on 31 September. As part of the transition, the current fiscal year will have three quarters, or nine months, only.
  2. For the first-quarter, Thai Beverage’s spirits segment saw a 5.3% increase in revenue to THB31.1 billion due to higher volume sold. Spirits sales volume rose from 156 million liters to 162 million liters, an increase of 4%. Thai Beverage said that volumes had climbed due to agents’ stock up in anticipation of a hike in the alcoholic beverage excise duty. The tobacco tax had increased in February in Thailand, the company noted. The segment’s net profit also increased by 8.5% to THB6.2 billion.
  3. The beer segment continued to enjoy strong growth momentum from the launch of the new-look Chang Classic bottle. Sales volume increased by over 61% year-on-year to reach 273 million liters for the first-quarter of 2016. This helped the segment’s top-line to bubble up by 71% to THB18 billion. Better cost control resulted in the segment’s net profit spiking almost 175% to THB1.6 billion.
  4. The non-alcoholic beverages segment benefited from the launch of Jub Jai herbal teas and mineral water. There was a stronger consumer awareness on healthier drinks, noted Thai Beverage. Sales volume for the segment increased by 15.5% year-on-year to 416 million liters. Segment sales grew by over 13% to THB4.5 billion while the net loss narrowed to THB215 million compared to a net loss of THB369 million in the previous year.
  5. Thai Beverage’s Food segment saw its revenue decline by 6.5% to THB1.5 billion. Net profit, though, defied the odds by posting a big increase from THB11 million in the first-quarter last year to THB38 million due to better cost efficiency. During the quarter, Thai Beverage incorporated Food of Asia Co. Ltd.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.