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Thai Beverage Public Company Limited’s Latest Earnings: An Overview Of The The Non-Alcoholic Beverages 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 articles, I discussed the results of its Spirits and Beer businesses. In this article, I will be running through the Non-Alcoholic Beverages segment.

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. For the third quarter of FY2018, this segment accounted for 7% of Thai Beverage’s total revenue.

The financial performance

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

Source: Thai Beverage’s Result Presentation

Overall, we can see that this segment experienced a negative quarter. Revenue, EBITDA (earnings before interest, tax, depreciation and amortization) and net profit all declined on a year-on-year basis.

The decline in revenue was  due to a change in sales mix and lower sales volume on a year-on-year basis. Similarly, EBITDA and net profit were negatively impacted by the change in sales mix and lower sales volume in the quarter. Going forward, Thai Beverage will need to scale up its operation, or improve its sales mix to turnaround its loss making Non-Alcoholic Beverages business.

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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.