Thai Beverage Public Company Limited (SGX: Y92) is a food and beverage company with four different business segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages.
The company recently appeared on my radar as it’s trading close to its 52-weeks low (regular readers will know that I’m a big fan of looking for ideas from 52-weeks low list).
After digging a little further, I found a number of good reasons why Thai Beverage might be a good investment candidate for consideration. In our previous article here, we mentioned three of those reasons. A quick recap to those three reasons are:
1. Diversified business activities
2. Historical growth rates
3. Dividend track record
Today, we will continue with the another two reasons.
An owner operator refers to major shareholders who are take an active part in managing the company.
In the case of Thai Beverage, Mr.Charoen Sirivadhanabhakdi (chairman) and his wife Khunying Wanna Sirivadhanabhakdi (vice chairman) collectively own a combined interest (direct and indirect holding) of 65.89% in Thai Beverage’s shares. Given their majority share ownership in Thai Beverage, Mr Charoen and his family are deemed to be financially aligned with external shareholders, and will likely strive to make Thai Beverage successful in the long term.
Latest financial performance
Another thing to point out here is that Thai Beverage reported stable performance in its latest earnings update.
For the quarter ended 31 March 2018, Thai Beverage announced that revenue was up 34.3% year-on-year to THB 67.6 billion. Similarly, EBITDA (earnings before interest, tax, depreciation and amortization) grew by 28.2% as compared to last year to THB 11.9 billion. Yet, net profit attributable to shareholders declined 3.2% year-on-year to THB 6.3 billion. The decline was mainly due an increase in finance cost related to acquisition and weaker performance from its existing beer business.
In all, Thai Beverage latest performance was positive given its higher revenue and EBITDA, offset partially by the weaker net profit.
Investor’s sentiment towards Thai Beverage is rather negative at the moment. Yet, those who are willing to invest for the longer term might consider putting Thai Beverage onto their watchlist.
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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.