SINGAPORE (Feb 14): Thai Beverage reported a 62% fall in 1Q earnings to THB2.91 billion ($122 million) from THB7.71 billion on one-off expenses of THB2.35 billion related to acquisitions in this quarter and finance costs linked to the Sabeco acquisition.
Total revenue dipped 3% to THB45.97 billion from THB46.99 billion.
Sales of spirits business increased 5.8% to THB24.8 million even though sales agents in Thailand reduced their purchase orders after the announcement of an excise tax hike in September 2017 as a result of the acquisition of the Grand Royal Group in October 2017.
Sales from beer business of 4.0% to THB14.4 billion as the market recovery after the mourning period was slower than expected and there was an increase in packaging costs, advertising and promotion expenses, and personnel expenses.
Sales of non-alcoholic beverages business increased 5.8% to THB4.1 billion and food business of 42.3% to THB2.3 billion fuelled by an increase in carbonated soft drink and drinking water sales volume.
In 1Q, the group completed four acquisitions consisting of a 76% stake in Spice of Asia chain of restaurants selling hotpot and Thai food; a 75% stake in Myanmar Supply Chain and Marketing Services Co. and Myanmar Distillery Co. to operate spirits business in Mynamar; 252 existing KFC stores in Thailand from subsidiary The QSR of Asia Co.; and a 53.95% stake in Saigon Beer-Alcohol- Beverage Joint Stock Company (Sabeco).
Shares in ThaiBev closed at 91 cents on Wednesday.
