THAILAND: Struggling volumes drag on H1 for ThaiBev
- Half-year net profits fall by 13.5% to THB8.32bn (US$266.6m)
- Sales in six months to end of June slip by 7.3% to THB75.99bn
- Beer volumes hold steady, but spirits volumes fall in H1
- Serm Suk up against PepsiCo numbers a year earlier
ThaiBev saw volumes struggle across the board in H1
ThaiBev has seen the cycling of tough comparatives for its Serm Suk soft drinks unit hamper performance in the first half of this year.
The Thai drinks group said yesterday (15 August) that net profits in the six months to the end of June came in 13.5% down on the corresponding period a year earlier, at THB8.32bn (US$266.6m). Sales in the half-year fell by 7.3% to THB75.99bn, as its beer, soft drinks and spirits brands all posted volume declines.
Serm Suk, which was previously PepsiCo's Thai distributor, posted a 185% plunge in net profits for the half-year. The unit, which ThaiBev acquired in late-2011, is in its first year of selling its own brands only, after its PepsiCo relationship expired in November 2012.
Meanwhile, beer volumes dipped by 3.4%, with spirits performing similarly, down by 8.1% year-on-year.
ThaiBev's international operations posted a 19% drop in half-year sales, which was blamed primarily on reduced sales of bulk Scotch whisky. Also cited as a reason for the poor performance abroad was the introduction of anti-extravagance legislation in China late last year, leading to a 66% plunge in spirits sales in the country for ThaiBev.
For the company's second quarter, net profits were down by 6.1% with sales falling by 11%.
ThaiBev's share price on the Singapore Stock Exchange fell markedly after the results announcement. At today's close, shares were 2.75% down at THB0.53.
To read the company's official announcement, click here.
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