ThaiBev posts 38.5% year-on-year jump in full-year profit

Bottles of Chang Beer, a product of Thai Beverage (ThaiBev), on display at a shop in Bangkok, Thailand.
Bottles of Chang Beer, a product of Thai Beverage (ThaiBev), on display at a shop in Bangkok, Thailand.PHOTO: REUTERS

SINGAPORE - A better performance from spirits and food and contributions from stakes in Fraser & Neave (F&N) and Frasers Centrepoint Limited (FCL) boosted full year numbers at Thai Beverage.

Net profit came in of 34.7 billion baht (S$1.4 billion) for the 12 months to Sept 30, a 38.5 per cent jump from the same period last year.

Earnings were also buoyed by a decrease in net losses at its non-alcoholic beverages business.

Excluding 8.5 billion baht of fair valuation gains on financial assets, net profit from operations would have risen by a smaller 4.6 per cent to 26.2 billion baht. ThaiBev holds a 28.5 per cent stake in F&N and 28.4 per cent of FCL.

Revenue was 190 billion baht, nearly flat from the same period last year.

A decrease in beer sales of 4.7 per cent and a 0.9 per cent fall in non-alcoholic beverage turnover were offset by an increase in spirits revenue of 2.6 per cent while the food unit was up 1.5 per cent.

ThaiBev has changed its fiscal year-end to Sept 30 from Dec 31.

Earnings per share was 1.37 baht, up from 0.75 baht a year earlier, while net asset value per share was 5.13 baht, up from 4.78 baht.

It is paying a final dividend of 0.47 baht for the 12 months to Sept 30, up from 0.4 baht for the nine months ended Sept 30, 2016.

The group noted that Thailand's beverage industry was been affected by the slowdown in consumption during the mourning period for the late Thai king and the implementation of the new excise tax act.

The new act changes the base of excise tax calculation from last wholesale prices to recommended retail prices, and imposes tax on sugar content in non-alcoholic beverages.

Agents and retailers were alerted by the new excise tax effective from mid-September 2017, resulting in higher purchase orders before the excise tax increase.

"Our product prices have been adjusted to cover the cost from both new alcohol excise tax and the first-ever sugar tax on non-alcoholic beverages," the group said.

"Nevertheless, the business still delivered good business performance this year."