SINGAPORE (May 10): Thai Beverage reported 2Q earnings fell 12.2% to THB 5.79 billion ($250 million) from a restated THB 6.59 billion, due to a lower net profit from the spirits and food businesses and from F&N/Frasers Property.
Earnings per share fell to THB 0.23 from THB 0.26.
2Q revenue rose 3.6% to THB 69.9 billion due to an increase in sales of its beer business by 13.3% to THB 30.7 billion, non-alcoholic beverages business by 9.0% to THB 4.5 billion and food business by 10.5% to THB 3.8 billion, although there was a decrease in sales of spirits business of 5.8% to THB 31.1 billion.
Gross profit came in 2.4% higher at THB 20.4 billion.
By segment, the spirits business posted a 12.2% fall in net profit to THB 5 billion due to a decrease in sales volume, higher cost of goods sold as well as higher advertising and promotion expenses and staff costs.
Net profit from the food business segment fell 50.7% to THB 102 million due to an increase in advertising and promotion expenses although there was an increase in gross profit.
Net profit from the beer business rose 60.4% to THB 348 million due to higher sales and gross profit.
Net losses from the non-alcoholic beverages segment narrowed by 63.5% to THB 128 million.
The company was also hit by higher administrative expenses of 5% to THB 4.08 billion, while finance costs also increased 50% to THB 1.8 billion. This led operating profit to slip 2% to THB 7.18 billion.
ThaiBev's share of profit of investment from associates and joint ventures net of income tax fell 36% to THB 675 million.
Net profit from F&N/FPL was down 44% to THB 465 million from THB 828 million a year ago.
For 1H19, the group reported a 40.3% rise in earnings to THB 13.2 million, or THB 0.53 per share, from a year ago.
The company is paying out an interim dividend of THB 0.15.
ThaiBev closed at 82.5 cents on Friday, up 0.5 cent before the results were announced.
