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Thai Beverage Public Company Limited’s Latest Earnings: An Overview Of The Non-Alcoholic Beverages Business

In mid February, Thai Beverage Public Company Limited (SGX: Y92)released its first quarter earnings update for its fiscal year ending 30 September 2018 (FY2018). The reporting period was from 1 October 2017 to 31 December 2017.

As a quick introduction, Thai Beverage is a company operating in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages. Given that the company has four different businesses, I thought it would be useful to have a look at the performance of the individual segments.

In previous articles, I had discussed the Spirits and Beer segments. In this article, I will be running through the Non-Alcoholic Beverages segment, which accounted for 9.0% of Thai Beverage’s total revenue in the first quarter of FY2018, but -4.8% of total net profit (the segment was loss-making). [Editor’s note: An article studying the Food segment has been published. It can be found here.]

What the Non-Alcoholic Beverages segment does

The Non-Alcoholic Beverages segment focuses on the production and sales of water, ready-to-drink coffee, energy drinks, green teas and more.

The financial performance

The table below shows a condensed income statement for the Non-Alcoholic Beverages segment for the first quarter of FY2018:


Source: Thai Beverage FY2018 first quarter earnings presentation

Although the segment continued its loss-making ways in the reporting quarter, there was actually progress. Revenue grew by 5.8% year-on-year on the back of a 9% increase in sales volume (water and carbonated soft drinks drove the increase in volume).

The EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin and net profit margin both improved as well, due to lower advertising and promotional expenses. In all, the sgement’s net loss narrowed from THB 239 million a year ago to THB 227 million.

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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.