Tuesday, February 25, 2020

Liquor slump drags down ThaiBev earnings

May 30. 2019
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By   THE NATION

A SLUMP in liquor sales for Thai Beverage Plc’s (ThaiBev) fiscal second quarter contributed to an 8.6 per cent drop in net profit at the drinks giant compared with the year-earlier period.

ThaiBev yesterday said that while liquor sales fell 2.9 per cent, sales of its beer increased by 13.3 per cent year on year in the quarter.

 This improvement followed the group’s acquisition of Saigon Beer Alcohol Beverage Corp (Sabeco), Vietnam’s leading brewery group in 2017, according to the company’s reports yesterday.

The group’s sales in the first half of its fiscal year reached Bt142 billion, with Bt14 billion in profit. White liquor recorded the highest profit over the period.

ThaiBev’s fiscal year runs from October 2018 to September 2019. The group’s second quarter runs from January to March.

ThaiBev acquired Sabeco for Bt156 billion. The purchase helped driving the group’s beer business to grow 10.6 per cent in sales volume and by 69.1 per cent in profit.

ThaiBev’s total sales in the second quarter of its fiscal year were Bt69.99 billion, up 3.6 per cent over the same period of the last fiscal year. The Bt6.75 billion in net profit for the second quarter marked an 8.6 per cent drop from the same quarter of its last fiscal year. 

The group made Bt142.61 billion in total sales in the first half of its fiscal year, up 26.1 per cent from the year-earlier period.

 The group earned Bt14.23 billion in net profit in the first half of its fiscal year, up 38 per cent compared to the year-earlier term.

 Beer contributed the largest revenue over the period accounting for 44.7 per cent, followed by the liquor business with 44 per cent, non-alcohol beverages with 6 percent, and food products at 5.3 per cent. Liquor contributed the highest profit, accounting for 88.3 per cent of the group’s total net profit, followed by beer products at 12.2 per cent, food products at 2.5 per cent, and non-alcohol beverages 3 per cent.

For the sales volume, the group posted 663 million litres in beer sales in the second quarter of its fiscal year, up 10 per cent from a year ago.

. The group posted 181 million litres in sales of liquor products, down 2.9 per cent compared to the same quarter in the last fiscal year; 13 million litres in sales of soda water, down 4.8 per cent; 432 million litres in sales of non-alcohol beverages, up 3.1 per cent; 74 million litres in sales of ready-to-drink green tea and herb drinks, up 11.3 per cent; 278 million litres in sales of drinking water, down 1.2 per cent; 79 million litres of carbonated soft drinks, up 15.6 per cent; and one million litres in sales of other beverages, including energy and sport drinks, down 52.7 per cent.

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