THAILAND: ThaiBev toasts lively 2012 as sales, profits rise

By Olly Wehring | 27 February 2013

Full-year net profits soar by 140% to THB28.76bn (US$965m) as Fraser & Neave makes first appearance
Net sales for 2012 rise by 22% to THB161.04bn
Operating profits also up, by 17% to THB19.46bn

Never far from the headlines last year, ThaiBev has reported rising sales and profits for 2012

ThaiBev has posted a strong set of numbers for 2012 as its purchases of Serm Suk and a major stake in Fraser & Neave came into play in the year.

The company, which spent much of last year building up its holding in Singaporean conglomerate Fraser & Neave, said earlier today (27 February) that net profits in 2012 more than doubled, coming in 140% up on 2011 at THB28.76bn (US$965m). Sales in the year rose by 22% to THB161.04bn, while operating profits increased by 17% to THB19.46bn.

Stripping out the numbers generated from the now-90% stake in Fraser & Neave and Thai drinks bottler Serm Suk, which ThaiBev bought in the third quarter of 2011, group full-year net profits still rose markedly on 2011, by 41% to THB17.46bn.

The firm's spirits operations delivered sales growth of 9.9% in value and 3.3% in volume, while the beer business saw value sales rise by 4% and volume sales climb by 4.9%.

Last year was the first full 12 months that Serm Suk has been incorporated into ThaiBev. Compared to 2011, when Serm Suk came under ThaiBev's control in September, non-alcoholic beverage sales leapt by 167% in FY2012 to THB29bn, while net profits hit THB417m compared to a loss in 2011 of THB464m.

Sales outside Thailand, driven by its Scotch whisky and Chang beer brands, were up by 28% year-on-year.

In its review of 2012, ThaiBev noted the introduction of a tax rise on certain spirits in Thailand in August. "The new excise taxes caused a rise in the company’s excise tax cost of white spirits, compounded spirits and brandy of about 25%, 16.7% and 4.2% respectively," ThaiBev said. "However, the company passed on the tax increase to its customers directly."

The company is the market leader in domestic spirits in Thailand.

To read the company's official statement, click here.

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Sectors: Beer & cider, Company results, Soft drinks, Spirits