10 Quick Things That Investors Should Know About Thai Beverage Public Company Limited’s Latest Earnings

In mid-February, Thai Beverage Public Company Limited (SGX: Y92) reported its first quarter earnings for the financial year ending 30 September 2018 (FY18). As a quick introduction, Thai Beverage is a company operating in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages.

Here are 10 things investors should know about Thai Beverage’s latest quarter:

1. Revenue was down 2.6% year-on-year to THB 46.8 billion.

2. EBITDA (earnings before interest, tax, depreciation and amortization) declined by 46.8% as compared to last year to THB 5.6 billion.

3. Net profit dropped 61% year-on-year to THB 3.0 billion. Excluding non-recurring transactions, net profit would have dropped by 29.3% year-on-year.

4. EBITDA margin (before recognition of fair value gain) declined from 22.4% for the same period last year to 12.3% in FY18. Similarly, net profit margin was down from 16.5% last year to 6.6% in the latest quarter.

5. Sales volume for Spirits, Soda Water and Non-alcoholic beverage were up by 0.6%, 18.9% and 5.9%, respectively, year-on-year. On the downside, sale volume for beer was down by 6.2% year-on-year.

6. As at 31 December 2017, the Group had cash and cash equivalents of THB 16.5 billion and total borrowings of THB 229.5 billion. This gives a net debt position of THB 213.0 billion, up from the THB 30.7 billion recorded on 30 September 2017.

7. Gearing ratio (net debt to equity) stood at 145% as at 31 December 2017.

8. In the latest quarter, Spirits, Beer, Non-alcoholic and Food accounted for 54.3%, 31.7%, 9.0% and 5.1%, respectively, of Thai Beverage’s revenue.

9. In the latest quarter, Spirits, Beer, Non-alcoholic and Food accounted for 84%, 18.5%, -4.8% and 2.3%, respectively, of Thai Beverage’s net profit.

10. Thai Beverage completed four acquisitions in its fiscal first quarter, including acquisitions of 76% shareholding in a restaurant business, 75% shareholding in a Myanmar spirits business, 252 KFC stores in Thailand, and 53.59% shareholding in Sabeco in Vietnam.

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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.