Thai Beverage (ThaiBev) Y92 has reported an ebitda of 13.79 billion baht ($514.6 million) for the 1QFY2024 ended Dec 31, 2023, up 1.9% compared to the corresponding period last year.
Thanks to cost management measures, the company achieved ebitda growth across all its business segments despite a decline in sales revenue.
During the quarter, ThaiBev’s sales revenue decreased by 5.9% y-o-y to 76.11 billion baht as all its segments except beer grew on a y-o-y basis.
The spirits business generated revenue of 33.88 billion baht, a y-o-y increase of 0.5%, despite a 1.4% decline in total sales volume. The segment remained resilient with ebitda increasing 1.4% y-o-y to 9.04 billion baht.
The spirits business in Myanmar reported a robust performance, with increases in both sales revenue and ebitda despite the challenging operating environment.
However, due to a slower-than-expected economic recovery in Thailand and Vietnam, total volume for ThaiBev’s beer business declined by 15.0% y-o-y in 1Q2024. Sales revenue was supported by price adjustments, resulting in a 14.0% decline y-o-y to 32.62 billion baht.
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Meanwhile, ebitda for the beer business increased 2.1% to 3.76 billion baht, due to lower raw material and packaging costs, as well as prudent cost management.
The company’s non-alcoholic beverages (NAB) business recorded a 1.6% rise in sales revenue to 4.68 billion baht in 1QFY2024 on the back of a 4.5% increase in sales volume. Ebitda rose 9.8% to 449 million baht, mainly due to higher production efficiency and lower packaging costs.
ThaiBev’s food business registered a 5.9% y-o-y increase in sales revenue to 4.97 billion baht. The increase came as the food business gained greater brand visibility and accessibility through the opening of new stores, the introduction of different price tiers and excitement through new promotion items and combos. As a result, ebitda increased 3.4% y-o-y to 541 million baht.
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As at Dec 31, 2023, cash and cash equivalents stood at 47.73 billion baht.
The company’s net interest bearing debt to equity ratio stood at 0.65x as at the same date.
Shares in ThaiBev closed 0.5 cents higher or 1.0-2% up at 49.5 cents on Feb 14.
