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A Quick Overview Of Thai Beverage Public Company Limited’s Non-Alcoholic Beverages Business

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

The company recently reported its full year results for the year ended 30 September 2017 (FY2017). In this article, we will have a quick overview of the FY2017 performance for the Non-Alcoholic business.

Source: Thai Beverage FY2017 Full Year Results Presentation

The Non-Alcoholic segment focuses on production and sales of water, ready-to-drink coffee, energy drink, green tea and fruit flavored drinks. Overall, we can see that this segment continued its loss making streak in FY2017.

Revenue declined marginally by 1% in FY2017 mainly driven by a decrease in sales volume of some products, despite an increase in sales volume of drinking water and ready-to-drink tea.

Yet, the weaker revenue was offset by cost efficiency from packaging cost, and advertising and promotion expenses. This resulted in gross profit to improve by 3.5% in FY2017 and a turnaround in EBITDA (earnings before interest, tax, depreciation and amortization) as opposed to a loss last year.

Similarly, EBITDA and net profit margins improved year-on-year as a result of the cost efficiency mentioned above.

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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.