THAILAND: Beer, soft drinks weigh on ThaiBev H1 profits
Chang beer sales fail to prop up ThaiBev profits
Higher costs in beer and soft drinks have dragged Thai Public Beverage Co (ThaiBev) to lower profits for the first half of 2010.
ThaiBev said today (10 August) that net profits for the six months to the end of June fell to THB5bn (US$156.4m), down 12% on earnings of THB5.77bn in the first half of 2009.
A tax rise on beer in Thailand and higher sales costs in brewing, soft drinks and spirits divisions more than eclipsed the boost ThaiBev received from its newly acquired Chinese spirits business, Yunnan Yulinquan Liquor Co.
Net losses in beer deepened to THB824m versus THB560m last year, with EBITDA swinging THB282m into the red, from profits of THB443m a year ago, said the Chang beer brewer. In non-alcoholic drinks, net profits for the half-year fell by 52.5% to THB143m.
Despite the earnings slip, ThaiBev reported an increase in sales across all divisions for the six-month period. Group net sales rose by 9% to THB59.4bn, from THB54.3bn a year ago, with Chang beer sales up strongly in all regions.
Sales of non-alcoholic beverages shot up by 46% to THB3.4bn, thanks to the Oishi beverages unit.
In spirits, sales rose by 6% to THB36.9bn, largely due to the inclusion for the first time of Yunnan Yulinquan Liquor Co. Higher costs saw net profits in spirits fall by 5% to THB5.7bn, however.
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