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Thai Beverage Public Company Limited’s Latest Earnings: An Overview Of The Beer Business

In the middle of August, Thai Beverage Public Company Limited (SGX: Y92) released its third quarter earnings update for its fiscal year ending 30 September 2018 (FY2018).

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 my previous article, I discussed the results of its Spirits business. In this article, I will be running through the Beer segment.

What the Beer segment does

The Beer segment is engaged in the production and sales of branded beer products. There are three main brands under the segment, which are Chang beer, Archa beer, and Federbrau beer.

The financial performance

The table below shows a condensed income statement for the Beer segment for the latest quarter:

Source: Thai Beverage earnings presentation

We can see that the Beer segment delivered a mixed performance in the reporting quarter. Revenue, EBITDA (earnings before interest, taxes, depreciation, and amortisation) and net profit were all up on a year-on-year basis. Yet, profit attributable to shareholders fell 23.3% year-on-year.

Revenue from the beer segment grew 105.2%. The spike in revenue was due to the consolidation of Sabeco’s (acquired last year) financials into Thai Beverage. Sales volume (including Sabeco) grew 223.7% year-on-year. Nevertheless, sales volume of the existing beer business fell 8.9% year-on-year due to the stagnant economy and low consumer purchasing power.

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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.