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Thai Beverage Public Company Limited – The Good And Bad That We Should Know About Its Latest Quarterly Results

Thai Beverage Public Company Limited (SGX: Y92) operates in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages.

The company has recently reported its third-quarter 2017 numbers. In this article, we will look at the good and bad from the latest quarterly results.

Overall result

Source: Thai Beverage Q3 FY2017 Result Presentation

For the quarter, revenue was flat year-on-year, but net profit was up by 15.4% year-on-year (excluding fair-value gains).

The improvement in net profit was due to increase in net profit of spirits, food, and F&N/FCL, offset by a decrease in net profit of the beer business and an increase in net loss of non-alcoholic beverages business.

Positive

There are a number of positives to pay attention to.

Firstly, the Spirit and Food business delivered an improvement in net profit, compared to the same period last year.

Secondly, EBITDA and net profit margins (exclude one off fair value gains) improved, compared to the same period last year, due to stronger profitability in F&N/FCL.

Thirdly, the balance sheet has strengthened, as compare to the same period last year, due to reduction of debt (net of cash) from THB 41.0 billion to THB 38.5 billion.

Negative

Despite the positive points mentioned above, there are a few negatives we should be aware of.

First of all, the Beer and Non-alcoholic business delivered weaker net profit in the quarter as compare to the same period last year.

Secondly, the sales revenue of the International business decreased by 13.1% year-on-year, mainly due to the exchange rate impact and the slowdown of international beer business.

Thirdly, with the exception of the Spirit business, the volume for Beer and Non-alcoholic business were down by 8.7% and 2.5%, respectively, on a year-on-year basis.

Conclusion:

Overall, we see that Thai Beverage delivered a mixed bag, with lower revenues but higher profitability, due to improvements in the Spirit, Food and F&N/FLC business.

On the other hand, sales volume declined for both the Beer and Non-alcoholic businesses.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.