THAI Beverage (ThaiBev) posted a net profit of 27.2 billion baht (S$1.1 billion) for its full year ended Sep 30, a marginal 1 per cent drop from 27.4 billion baht a year ago.
The beverage manufacturer on Thursday (Nov 21) said that its net profit was weighed down by a decrease in earnings from the spirits and food businesses.
Earnings per share stood at 1.15 baht for FY2024, up from 1.09 baht the previous year.
Full-year revenue rose 2.2 per cent to 340.3 billion baht, from 332.9 billion baht in FY2023.
It attributed the revenue growth to increased sales in its spirits, beer, non-alcoholic beverages, and food businesses. However, this was partially offset by a decrease in sales from its publishing and print business.
By segment, the spirits business’ net profit attributable to shareholders fell 5.8 per cent to 20.8 million baht, due to higher finance costs and income tax expenses.
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The net profit of the beer business rose 10.1 per cent to 2.7 billion baht on the back of an increase in earnings before interest, tax, depreciation and amortisation (Ebitda). The Ebitda was buoyed by a rise in gross profit and a decrease in distribution costs.
The non-alcoholic beverages business reported a net profit of 1.5 billion baht, up 21.7 per cent. The segment’s overall gross profit also rose on higher sales revenue and production efficiency, as well as reduced packaging costs.
Net profit for ThaiBev’s food business fell 72.5 per cent to 64 million baht, due to a decline in the segment’s Ebitda. The lower Ebitda was the result of increased operating expenses to support sales growth, and a decrease in a one-time fair value gain on the remeasurement of the group’s Cocoaland investment in the prior year.
ThaiBev said that Thailand’s alcoholic and non-alcoholic beverage industry continued to show signs of improvement in 2024, supported by the recovery of the tourism sector.
Additionally, hotter weather conditions also contributed to the growth of the beverage industry.
However, high costs of living and household debt levels have dented the purchasing power of consumers. The limited consumer spending influenced the domestic consumption of alcoholic and non-alcoholic beverages.
A final dividend of 0.47 baht per share was declared for FY2024, up from 0.45 baht per share the year before. The dividend will be paid out on Feb 28, 2025, after the book closure on Feb 10.
Shares of ThaiBev closed down 1 per cent or S$0.005 at S$0.515 on Thursday, before the release of the results.
