We are now in the busiest part of earnings season. Many companies have reported their results in the past few weeks — some of them have had good news to share, some bad, and some a bit of both.
Today we’re looking at two companies that have recently reported mixed results.
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Thai Beverage Public Company Limited (SGX: Y92) is first on the list — a company operating in four different segments, namely Spirits, Beer, Food, and Food Beverages.
For the quarter ended 31 March 2019, Thai Beverage reported that revenue was up by 3.6% year on year to THB 70.0 billion. Yet, earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 0.9% as compared to last year to THB 11.8 billion. Similarly, net profit attributable to shareholders declined by 12.2% year on year to THB 5.8 billion. The lower profitability was driven by weaker performance in the Spirits and Food segments.
As of 31 March 2019, the Group had cash and cash equivalents of THB 22.7 billion and total borrowings of THB 223.9 billion. This gives it a net debt position of THB 201.2 billion. Also, Thai Beverage declared a dividend of THB 0.15.
Thai Beverage commented on the general economy outlook:
“The Thai economy slowly expanded quarter-on-quarter in 2Q FY2019, supported by further domestic demand and public spending increases. The value of merchandise exports in most categories, however, contracted amid softer external demand, which also contributed to a decline in manufacturing output. The tourism sector grew at a slower pace as well. Nonetheless, the economy remained stable.
The beverage industry continued to expand in line with the overall Thai economy. Private consumption improved QoQ, stimulated by campaigns ahead of the election in March. On the back of declines in both agricultural prices and production however, farm income slightly contracted year-on-year.”
Wilmar International Limited (SGX: F34) is the second company we’re considering today. it’s an agricultural company that operates through four main segments: Tropical Oils, Oilseeds and Grains, Sugar, and Others.
In the latest quarter ended 31 March 2019, Wilmar reported that revenue fell by 6.2% to US$10.4 billion. Yet, earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 15.5% to US$645.4 million. Similarly, net profit for the quarter jumped 26.4% to US$257.0 million. Core net profit fared better, up by 36.4% year on year to S$250.3 million. The stronger net profit was driven by better results in Tropical Oils, Sugar, and Consumer Products.
Kuok Khoon Hong, the chairman and CEO of the conglomerate, commented:
“The Group reported a reasonably good set of results in 1Q2019, given the tough operating environment. The improved performance by both Tropical Oils and Consumer Products businesses since 2Q2018 has been encouraging. With the exception of sugar milling and palm plantation, most of our businesses are doing reasonably well. Further, crushing margins are also expected to improve in 2Q2019. We are cautiously optimistic that performance for the rest of the year will be satisfactory.”
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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.