Published August 15, 2008

Thai Beverage profit flat at 2.4b baht

By NISHA RAMCHANDANI
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THAI Beverage Public, Thailand's largest brewer and distiller, has posted a flat profit of 2.39 billion baht (S$99.5 million) for the second quarter ended June 30.

Expanding into Europe: The company's Chang Beer was launched in the UK this year

Revenue for the quarter grew by 5 per cent from 23.15 billion baht in the previous corresponding quarter to 24.34 billion baht, mainly due to higher sales revenue from the spirits business.

Earnings per share (EPS) for 2Q08 came to 0.10 baht, up slightly from 0.09 baht previously.

An interim dividend amounting to 0.12 baht per share will be paid out on Sept 11.

For the first six months of the year, net profit dipped 5 per cent to 5.02 billion baht, while revenue increased by 4 per cent to 51.1 billion baht.

For 1H08, spirits contributed 56 per cent of sales, while beer accounted for 42 per cent and both the non-alcoholic beverage and industrial alcohol segments comprised one per cent each.

Sales revenue for beer dipped nearly 8 per cent in the first half due to weaker sales.

While sales volume for spirits fell, an increase in price to cover a 1.5 per cent excise tax helped to offset the smaller volume which resulted in a 9.8 per cent increase in sales revenue.

The company expanded its non-alcoholic beverage segment through the acquisition of assets from a Thai company for producing energy drinks and ready-to-drink coffee. The business started in 1Q08. As such, the segment registered sales of 365 million baht for 1H08.

Its industrial alcohol business saw a growth in sales to 757 million baht on the back of higher sales volume of ethanol. However, there was still a net loss due to the increase of idle costs as a result of lower production.

Thai Beverage also launched a new scotch whiskey this year in Thailand, 'specially designed with the Asian market in mind', said Richard Jones, head of investor relations.

Thai Beverage's Chang Beer was launched in the UK this year, while Mekhong beer was launched in Sweden in February. Thai Beverage has plans for further expansion into Europe.