ThaiBev's profit skyrockets 115.1% YoY to about THB8b in Q3

Thanks to F&N's disposal of Myanmar Brewery.

ThaiBev’s profit after tax and minority interests skyrocketed 115.1% YoY to approximately THB8b in Q3 thanks in part to F&N’s disposal of Myanmar Brewery Limited, according to OCBC.

The company’s Spirits segment faced no material changes in terms of volume and ASP. Amid the difficult macro environment, brown spirits volume experienced a slight pain while white spirits volume is expected to remain flattish. Further, a recorded rise in SG&A was due to heightened staff costs coupled with market initiatives that pushed for improved product visibility at retail outlets.

Gross profit margin (GPM) was also inched down from approximately 20% for H1 to 16.7% thanks to higher packaging costs. Among these costs was ThaiBev’s attempt to improve market share and attract the new generation’s demand by retiring Chang beer’s amber bottle for a green one.

OCBC posits that despite concerns over Thailand economy, ThaiBev’s alcoholic portfolio is quite defensive. GPM may not enjoy gains in near-term but it might see improvement further ahead as company management has secured better prices for raw materials for next year.