The Good And Bad That Investors Should Know About Thai Beverage Public Company Limited’s Latest Earnings
Thai Beverage Public Company Limited (SGX: Y92) is a food & beverages company with four different business segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages. The company is based in Thailand, and the country is also its key geographical market.
In late November, Thai Beverage reported its full year results for its fiscal year ended 30 September 2017 (FY2017). There are both positive and negative takeaways that investors may want to learn about. But first, let’s take a look at Thai Beverage’s results for FY2017.
Here’s a graphic showing changes in the company’s revenue, net profit, EBITDA, and earnings per share (EPS) in FY2017:
Source: Thai Beverage FY2017 full year earnings presentation
Firstly, Thai Beverage’s Spirits and Food segments delivered growth in revenue in FY2017. The Spirits segment enjoyed a 2.6% increase in revenue to THB 109.3 billion, while the Food segment saw its revenue inch up by 1.5% to THB 6.74 billion.
Secondly, Thai Beverage’s EBITDA margin (before recognition of fair value gains) had improved from 18.6% in FY2016 to 19.3% in FY2017. Similarly, the company’s net profit margin (again before recognition of fair value gains) increased from 13.2% to 13.8% over the same period.
Thirdly, all of Thai Beverage’s business segments, with the exception of the Beer segment, saw their bottom-lines improve in FY2017 as compared to FY2016. Net profit at the Spirits segment had climbed by 2.1% to THB 20.42 billion, while the Food segment experienced an 18.2% jump in net profit to THB 104 million. The Non-Alcoholic Beverages segment saw its net loss narrow from THB 1.57 billion in FY2016 to THB 0.855 billion.
Lastly, Thai Beverage had a net debt position of THB 30.73 billion as of 30 September 2017, down from THB 41.0 billion a year ago.
Firstly, the Beer segment’s revenue and net profit both declined in FY2017. The former fell by 4.7% to THB 57.33 billion while the latter slipped by 4.1% to RHB 3.13 billion. On a slight positive note, Thai Beverage managed to control production costs at the Beer segment, which resulted in the segment’s gross profit increasing from THB 12.22 billion in FY2016 to THB 13.01 billion in FY2017.
Secondly, although there was an improvement, the Non-Alcoholic Beverages business still remained in the red as mentioned earlier.