THAI Beverage posted a 2.2 per cent rise in earnings before interest, taxes, depreciation, and amortisation (Ebitda) to 38.6 billion baht (S$1.4 billion) for the nine months ended Jun 30, from 37.8 billion baht a year ago.
The Ebitda growth was driven by the company’s beer and non-alcoholic beverage segments, due to effective cost management, based on its bourse filing on Thursday (Aug 8).
Sales revenue for the nine months came in at 217.1 billion baht, up 0.5 per cent from 215.9 billion baht in the same period last year. The company attributed the muted growth to a challenging economic situation.
Ebitda of the group’s beer segment continued to demonstrate impressive growth of 10.2 per cent, driven by effective brand investment and marketing activities, the company said.
Sales revenue of its beer business was up 0.6 per cent on the year to 93.8 billion baht, despite a 2.9 per cent decline in total sales volume, which was impacted by weakness from its Vietnam beer business.
The group, however, highlighted a “satisfactory” sales volume growth in the beer business in Thailand, attributable to the recovery of tourism in the country and the benefit from warmer weather.
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The non-alcoholic beverage business recorded a 4.9 per cent year-on-year rise in sales revenue to 15.6 billion baht in the nine months. The segment’s Ebitda rose 2.5 per cent to 1.8 billion baht, given an increase in brand investment and marketing activities, partially offset by production efficiency gains and lower packaging costs.
Meanwhile, its spirits business registered a sales revenue of 92.8 billion baht, down 0.9 per cent on the year, in line with a 2.7 per cent decline in total sales volume. Ebitda of the spirits segment was down 1.3 per cent to 23.5 billion baht.
“Nevertheless, the spirits business in Myanmar remained robust, with improved sales revenue and Ebitda,” highlighted the mainboard-listed beverage group.
Its food business saw a 5.1 per cent year-on-year increase in sales revenue to 15 billion baht during the nine months. This reflected a growing brand visibility and accessibility via new store openings, noted the group.
Its food segment’s Ebitda, however, decreased 0.6 per cent to 1.4 billion baht on higher raw material costs and operating expenses.
Shares of Thai Beverage closed Thursday up 1 per cent or S$0.005 to S$0.50, before the business update was released.
