Thailand: ThaiBev records 14% decline in second-quarter net profit

Thai Beverage Public Co (ThaiBev) on May 14 recorded a second-quarter net profit decline of 14 per cent on the year to 4.95 billion baht (S$220 million), amid what it called a “challenging business environment”, The Business Times reported.

The company said on May 14 that the Covid-19 outbreak has “severely affected” all economic activities in Thailand.

The Thai government has implemented measures to stem the spread of the virus, by mandating entertainment venues and restaurants to close and temporarily prohibiting alcoholic beverage sales. ThaiBev expects these measures will affect next quarter’s sales figures.

The group declared an interim dividend of 0.10 baht per share for the quarter ended March 31, lower than a restated 0.15 baht in the preceding year.

Revenue for the quarter came in at 61.41 billion baht, a 12 per cent drop year on year, weighed by declines in its key spirits and beer businesses.

Takings for the spirits business fell 3.9 per cent due to a decrease in sales; revenue for the beer business - which now includes Chang water and Chang soda - declined 23.5 per cent owing to a decrease in Sabeco beer sales.

Revenue for the food business was down 8 per cent, led by a decrease in revenue from Oishi food.

The non-alcoholic beverages segment saw revenue rise 5.1 per cent, however, boosted by an increase in sales.

Earnings per share for the second quarter was 0.2 baht, down from 0.23 baht previously.