Thai Beverage's Q2 net profit falls 4.9% to $258m on lower profits from associates - The Straits Times

Earnings per share stood at 0.28 baht for the quarter, down from 0.29 baht the previous year. PHOO: BLOOMBERG

SINGAPORE - Thai Beverage reported a 4.9 per cent drop in net profit to seven billion baht (S$257.5 million) for its second quarter ended March 31, 2024, from 7.4 billion baht in the previous corresponding period.

This was mainly due to a lower share of profits from investment on its associated companies and joint ventures, the beverage company said in a regulatory filing on May 13.

Earnings per share stood at 0.28 baht for the quarter, down from 0.29 baht the previous year.

Sales revenue for the second quarter rose 6.3 per cent to 71.6 billion baht from 67.4 billion baht, due to an increase in sales in its beer, non-alcoholic beverages, food and spirits businesses.

By segment, the second-quarter sales revenue of its spirits business gained 0.6 per cent to 31.6 billion baht on price adjustments and its portfolio mix. Net profit of the segment rose 2.3 per cent to 5.8 billion baht.

The second-quarter sales revenue for its beer business rose 12.8 per cent to 29.9 billion baht, amid an increase in sales volume and benefits from price adjustments in 2023.

Net profit of the beer segment gained 35.1 per cent to 755 million baht.

The non-alcoholic beverages segment posted an 8.6 per cent rise in sales revenue to 5.2 billion baht, due to an increase in sales volume across all categories.

Its net profit was up 81.3 per cent to 281 million baht.

Meanwhile, the food segment recorded a 4.5 per cent gain in sales revenue to 4.9 billion baht, as it benefited from greater brand visibility and accessibility through the opening of new stores.

After accounting for costs, the segment posted a net loss of 30 million baht, from a profit of seven million baht a year earlier.

An interim dividend of 0.15 baht per share was approved for the half-year, unchanged from a year earlier.

The dividend will be paid on June 12, after books closure on May 29.

For the half-year period, sales revenue slipped 0.4 per cent to 147.7 billion baht, due to a decrease in sales of its beer business, partly offset by an increase in sales of spirits, non-alcoholic beverages and food businesses.

Net profit for the half year fell 5.6 per cent to 15.2 billion baht, largely due to a 58.8 per cent decline in contributions from its associated companies.

Shares of Thai Beverage closed flat at $0.49 on May 13, before the release of the results. THE BUSINESS TIMES