A Quick Overview Of Thai Beverage Public Company Limited’s Food Business
Thai Beverage Public Company Limited (SGX: Y92) is a company operating in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages.
The company recently reported its full year results for the year ended 30 September 2017 (FY2017). In this article, we will have a quick overview of the FY2017 performance for the Food business.
Source: Thai Beverage FY2017 Full Year Results Presentation
The Food segment focuses on Japanese restaurants and distribution of foods and beverages.
Overall, we can see that the Food segment delivered better performance in FY2017 as compared to previous year.
Revenue improved marginally by 1.5% in FY2017 mainly driven by opening of new stores.
Furthermore, an increase in selling price and efficiency resulted in gross profit growing even faster than revenue, up 9.5% year-on-year. Net profit followed suit with an 18.2% year-on-year growth for the year due to higher gross profit and lower depreciation from fully depreciated assets.
On the downside, increase in rental expenses as a result of new stores opening resulted in lower EBITDA (earnings before interest, tax, depreciation and amortization).
In sum, the Food business delivered a commendable year with improvement in sales and profitability.