SINGAPORE (May 14): Thai Beverage announced 2Q20 earnings of 5.0 billion Baht ($221 million), a 14.5% drop from 5.8 billion Baht in 2Q19.
This came on the back of a 12.3% fall in revenue to 61.4 billion Baht from 70.0 billion Baht a year ago.
As cost of sales fell 14% y-o-y to 42.8 billion Baht, gross profit for 2Q20 came in at 18.6 billion Baht, a decrease of 8.8%, from 20.4 billion Baht of last year.
On a half-year basis, earnings for 1H20 came in at 13.4 billion Baht, 1.3% higher than 13.2 billion Baht last year. Revenue for 1H20 period fell 3.9% to 137.1 billion Baht from 142.6 billion Baht.
For the second quarter ended Mar 31, the fall in revenue was due to a decrease in sales of spirits business of 3.9%, beer business of 23.5%, and food business of 8.0%, although there was an increase in sales of non-alcoholic beverages business of 5.1%.
As at end March, the company recorded cash and cash equivalents of 10.7 billion Baht.
The stock will also be declaring an interim dividend of 0.1 Baht per share. And despite the challenging environment, Thai Bev says that it will also continue to pay a final dividend.
The company remains committed with its full year dividend policy of “Not less than 50% of net profit after deduction of all specified reserves, subject to our investment plans and as the Board of Directors deems appropriate”.
ThaiBev also today announced that it will be reporting its financial statements on a half-yearly basis instead of a quarterly basis. Hence, the next financial results announcement will be for the full-year ending Sept 30.
ThaiBev notes that the Covid-19 situation has caused several countries to enact protection measure, with a significant impact on the daily life, production and supply chain of goods. The evolution of Covid-19 as well as its impact on the global economy, and more specifically, on Thai Bev’s operations, is hard to predict at this stage.
The management is monitoring the situation to ensure the safety of its staff as well as to adapt its services and operations in response to the situation.
Shares in ThaiBev closed 3.6% lower at 66 cents on Thursday.
