THAILAND: Thai Beverage Q2 profit falls on rising costs

By just-drinks.com editorial team | 16 August 2007

Thai Beverage has posted a drop in Q2 net profit due to recent marketing expenses, but has secured a bank loan to cover costs for the year.

The company said earlier this week that, after marketing expenses in its beer and water businesses rose, second quarter net profit fell 6% to THB2.38bn (US$7.47m) compared to THB2.54bn the previous a year. The slip comes on the back of a 5% drop in sales to THB23.1bn in the period, from THB24.5bn in the corresponding period a year earlier.

Earlier this year, ThaiBev had arranged a bank loan through a UK bank. This week, however, the company said it has elected to take a one-year loan with a Thai bank for THB1.6bn. ThaiBev said the terms from the local bank were "more favourable".

The news follows recent local reports that ThaiBev is reportedly in the hunt for an energy drink company in Thailand.

The Bangkok Post said at the beginning of the month that ThaiBev is in talks with the founding family of Wrangyer energy drinks in the country. Thapana Sirivadhanabhakdi, a director and executive vice president at ThaiBev, was cited as confirming the talks in a report carried by the paper.

Other reports in the country have claimed a deal between the two could cost ThaiBev in the region of THB1bn.

Sectors: Beer & cider, Soft drinks, Water

Companies: Thai Beverage