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The Good And Bad That Investors Should Know About Thai Beverage Public Company Limited’s Full Year Results

Thai Beverage Public Company Limited (SGX: Y92) is a company operating in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages. The company has recently reported its 2018 full year results. In this article, I will look at the positive and not-so-positive aspects from the latest announcement.

Positives

Firstly, revenue was up by 20.9% year-on-year to THB 229.7 billion. This was driven mainly by higher sales revenue in the Beer and Food segments as a result of acquisitions.

Secondly, EBITDA (earnings before interest, tax, depreciation and amortisation) margin has improved for Beer and Food segments on a year-on-year basis. The former grew from 7.9% to 9.8% while the latter improved from 9.5% to 12.2%.

Thirdly, all segments grew their sales volume in FY18. Sales volume for Spirits, Soda Water, Beer and Non-alcoholic beverage were up by 1.2%, 15.4%, 140.6% and 0.2%, respectively, as compared to FY17.

Negatives

Firstly, Spirits and Non-alcoholic beverages segments delivered lower revenue for FY18 as compared to FY17. The former was driven by lower domestic sales while the latter fell as a result of lower sales volume of ready-to-drink tea.

Secondly, EBITDA declined by 19.8% as compared to last year to THB 36.2 billion. This was due to lower EBITDA in Spirits and Non-alcoholic beverages segments. Similarly, net profit attributable to shareholders declined by 46.3% year-on-year to THB 18.5 billion.

Thirdly, Non-alcoholic beverages segment’s net loss widened from THB 855 million last year to THB 1.2 billion in FY18.

Last but not the least, Thai Beverage had cash and cash equivalents of THB 22.5 billion and total borrowings of THB 231.3 billion. This gives a net debt position of THB 208.8 billion, up from the THB 30.7 billion recorded on 30 September 2017.

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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.