ThaiBev's profits jumped 33% to $1.18b in FY 2019

Profits of its spirits business rose 10.4% to $883.28m.

Thai Beverage's (ThaiBev) net profit jumped 33% YoY to $1.18b (THB26.08b) for FY 2019, the company announced. Revenue from sales and services grew 16% to $12.07b (THB267.36b) over the same period.

Excluding non-recurring expenses, net profit climbed 17.9%. Last year, the company incurred non-recurring expenses from a business acquisition, finance costs before taking results from Sabeco Brewery, and deferred tax utilization from food business restructuring of $113.30m (THB2.51b).

The growth was attributed to a 10.4% rise in profits from its spirits business to $883.28m (THB19.57b), 50% surge in its beer business to $142.37m (THB3.15b), growth from Fraser & Neave at 31%, and a narrowing of loss of non-alcoholic beverages business of 17.5% to $46.81m (THB1.03b).

However, the company saw 14.5% fall in net profit from its food business to $21.31m (THB472m).

Revenue from its international business leapt 36% YoY to $3.45m (THB76.45b) from revenue growth in Grand Royal Group as well as contribution from its new subsidiaries, Asiaeuro International Beverage in Hong Kong and Guangdong.

Its international beer business posted a 44% growth in sales revenue driven by Sabeco, which has been consolidated into its earnings since Q2. With this, DBS Group Research expects its regionalisation strategy to aid its earnings growth, it said in a report.