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THAILAND: Beer stoppage dampens ThaiBev's YTD profits

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  • YTD net profits down 51% to THB12.35bn (US$391m)
  • Net sales down 7% to THB119.56bn (US$3.79bn)
  • Operating profits (EBITDA) down 39% to THB20.07bn
  • Q3 net profits down 74% to THB4bn

ThaiBev has posted a sharp drop in YTD net profits as falling beer sales, caused by a halt in production, hampered the group. 

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Net profits fell by 51% to THB12.35bn (US$391m) in the nine months to the end of September, the Chang beer brewer said last week. Net sales slid by 7% to THB119.56bn in the same period, while operating profits (EBITDA) fell 39% to THB20.07bn.

Q3 net profits, meanwhile, were down 74% to THB4bn as beer sales slipped by 7.4% in the quarter. The decrease coincided with a 15-day halt in beer production in Q3 because of tax negotiation between suppliers and the Thai Government.

ThaiBev's non-alcoholic beverages have also been hampered this year by its Serm Suk unit's loss of a PepsiCo distribution deal last November. Sales in non-alcoholic drinks fell by 44% in year-to-date while profits were down by 214% over the same period.

Analysts CIMB Research said the termination of the PepsiCo contract and the beer production halt made Q3 “look bad” for the company but that the results marked “a decent quarter for ThaiBev”, which in H1 struggled with declining beer volumes.

“If not for the disruption, the beer business may have broken even at the EBITDA level,” CIMB said. 

YTD beer volumes were down by 6.5%

Spirits volumes rebounded in Q3, up 4% in the quarter, according to CIMB. YTD spirits volumes were down 4%. 

ThaiBev's shares on the Singapore Stock Exchange dropped by around 4% today.

To read the company's full announcement, click here.


Sectors: Beer & cider, Company results

Companies: PepsiCo

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