Earnings season has come and gone.
Given that many companies reported their results in the past few weeks, I thought it may be useful to summarise the results of some of these companies in three distinct buckets – positive, negative, mixed. This categorization will give our readers a quick overview of the performances of these companies.
With that in mind, we will focus on two of those companies that delivered a mixed performance in their latest results.
1. Thai Beverage Public Company Limited (SGX: Y92) reported its third-quarter earnings for the fiscal year ending 30 September 2018.
As a quick introduction, Thai Beverage is a Thai-based company with four major food and beverage segments, namely Spirits, Beer, Food, and Food Beverages.
In its latest earnings update for the quarter ended 30 June 2018, Thai Beverage reported that revenue was up 34.1% year-on-year to THB 60.7 billion. Yet, EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter declined by 39.2% as compared to last year to THB 10.8 billion. Similarly net profit dropped 56.5% year-on-year to THB 6.6 billion. Excluding one off items, net profit would have dropped by 1.4% instead.
As of 30 June 2018, the company had THB 235.3 billion in total debt, and THB 13.0 billion in cash and cash equivalents, translating to a net debt position of THB 222.2 billion. In contrast, at the end of September 2017, the company had THB 30.7 billion in net debt while in March 2018, it had a net debt position of THB 214.1 billion.
Thai Beverage summarised its latest quarter performance as follows:
“Total sales revenue of the Company in 3Q FY2018 was Baht 60,708 million, increased 34.1% YoY, attributable to an increase in sales revenue of beer and food businesses, although there was a decrease in sales revenue of spirits and non-alcoholic beverages businesses.
Net profit was Baht 6,647 million, decreased 56.5% when compared to the same period last year. This was due to a decrease in net profit of spirits business, an increase in net loss of non-alcoholic beverages business and there was no recognition of fair value gain on financial asset of Baht 8,498 million in 3Q FY2018, although there was an increase in net profit of beer business.”
2. Genting Singapore PLC (SGX: G13) is another company that reported mixed results.
As a quick introduction, Genting Singapore is the operator of the integrated resort, Resorts World Sentosa. Among the resort’s many attractions are one of Singapore’s two casinos, and the Universal Studios Singapore theme park.
In its latest quarter earnings update, Genting Singapore announced that revenue was down by 6% year-on-year to S$ 560.3 million while operating profit improved by 1% year-on-year to S$228.4 million. Similarly, net profit grew by 3% year-on-year to S$ 177.6 million. The improvement in profitability was due to a gain in foreign exchange on investments. Segment wise, the company’s gaming revenue declined by 8% year-on-year to S$406.1 million. On the other side, non-gaming revenue was up by 1% year-on-year to S$153.5 million.
Genting Singapore summarised its latest quarter performance as follows:
“For the second quarter of 2018, the Group reported revenue of $560.3 million and adjusted earnings before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) of $265.9 million. Resorts World Sentosa (“RWS”) continues to be at the forefront of Singapore’s leisure and entertainment industry, attracting visitors from all around the world. Our signature attractions performed well during the second quarter of 2018 with average visitation exceeding 18,000 daily. Hotels continued to outperform industry with average occupancy of over 91% for the quarter.
In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but luck factor was not in our favour. On a hold-normalised basis, RWS would have generated an Adjusted EBITDA of approximately $293 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.