ThaiBev half-year profits down 35% to $387.25m

The weak performance of its spirits and beer businesses pulled profits down.

Thai Beverage's (ThaiBev) half-year profits crashed by 35% in a year to $387.25m (THB9.26b), whilst revenue was up 16% to $4.75b (THB113.2b). For the second quarter, its profits dipped 3% to $265.49m (THB6.34b) whilst revenue jumped 34% to $2.83b (THB67.6b).

According to its financial statement, lower half-year profits were caused by declines in its spirits and beer businesses and lower contributions from Fraser & Neave (F&N) and Frasers Property

The lower profits in Q2 were caused by a 66.7% decline in beer profits, an increase in non-alcoholic beverages loss at 22.7%, and non-recurring expenses related to its acquisition of Havi Logistic worth THB1m.

ThaiBev completed its acquisition of Havi Logistic, which operates logistics businesses for food services in Thailand. Havi’s operations were recognised under the food business segment.

Meanwhile, Q2 profits from its spirit business jumped 2.8%, food business soared 646.4%, whilst contributions from F&N and Frasers Property jumped 38.2%.

Sales revenue in Q2 was lifted by an increase in sales of spirits business of 14.3%, beer business of 74.4%, and food business of 107.7%. However, there was a decrease in sales of non- alcoholic beverages business of 4.8%.

Its spirits business was helped by higher profit from MSC & MDC’s spirits. Total sales volume jumped 17.7% to 186.9 million litres.

Beer sales volume grew 153.3% to 579.6 million litres, non-alcoholic beverages sales volume edged up 1.7% to 419.2 million litres. ThaiBev's food business was helped by the increase in the number of restaurants from SOA&QSA.

Sales revenue recorded by the Company’s international business climbed 1,000.9% YoY. "International spirits sales revenue increased, driven mainly by the Grand Royal Group; and bulk whisky sales in UK and some Asian countries were brisk. In addition, international beer sales revenue soared on account of Sabeco’s beer sales," ThaiBev added.

ThaiBev declared a 2018 interim dividend of THB0.15 or 0.63 cents payable on 14 June 2018.