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Thai Beverage Public Company Limited’s Latest Earnings: An Overview Of Its Food Business

Credit: University of Exeter

In mid-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 SpiritsBeer, and Non-Alcoholic Beverages segments. In this article, I will be running through the company’s Food segment.

What the Food segment does

The Food segment is involved with the running of restaurants in Thailand (covering Japanese and Thai cuisines, and more), and the manufacture and distribution of snacks and chilled/frozen foods. For the third-quarter of FY2018, the segment accounted for 6% of Thai Beverage’s total revenue, and 0.5% of its total net profit.

The financial performance

The table below shows a condensed income statement for Thai Beverage’s Food segment for the third quarter of FY2018:


Source: Thai Beverage earnings presentation

We can see that the Food segment delivered a positive performance in the reporting quarter.

Revenue jumped by 109.7 %  due to the acquisitions of Spice of Asia and The QSR of Asia. The former runs hotpot and Thai food restaurants, while the latter owns over 250 KFC stores in Thailand. The increase in revenue flowed through the segment’s profits, resulting in significant jumps in EBITDA (earnings before interest, taxes, depreciation and amortisation) and net profit to shareholders on a year-on-year basis.

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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.