Thai Beverage FY17 Financial Results FY Ended 30 September 2017

Thai Beverage reported Financial Results ended 30 September 2017. The last stock price closed at $0.97 with highest $0.98.

It was highlighted in the presentation from 1st October 2016, soda water business was transferred to non-alcoholic beverages business to the spirits business. The changes recognise that majority of consumers drink spirits mixed with soda water. 

The new Excise Tax Act is effective from 16 September 2017. The key change to alcoholic beverage is the tax collection method based on a suggested retail price instead of the last wholesale price. However, the excise tax calculation is based on both ad valorem rates and specific rates. 

On 20th September 2017, Moody’s upgraded rating for ThaiBev from the improvement in financial profile to Baa2 Outlook Stable from Baa3 Outlook Positive.

There is marginal decrease in total sales revenue amid a full year of mourning period. Total sales dropped -0.02% to Baht 189,997 million. Spirits segment is still performing, volume +2.7% and net profit +2.1%.

There is rise in net profit (excluding F&N recognition of fair value gains on financial assets of Baht 8,497 million), net profit from normal operation increased 4.6% to Baht 26,184 million. Full year dividend payment increases from Baht 0.6/ share to Baht 0.67/ share. EPS increased 4% to 1.03 before F&N recognise fair value gains on financial assets. Net profit margin 12M16 (Oct15 – Sep16) is 11.5% compared to 12M17 (Oct16-Sep17) 12%. 

Business Segments

1. Spirits
Spirits sales revenue increases by 2.6% and net profit decreased from 18.8% to 18.7% for 12M16 compared to 12M17.

2. Beer
Beer sales revenue decreases by 4.7% and net profit increases from 5.4% to 5.5% for 12M16 compared to 12M17.

3. Non-alcoholic Beverages
Sales revenue decreases by 0.9% and net profit losses decreases from -9.3% to -5.1% for 12M16 to 12M17.

4. Food
Sales revenue for food increases by 1.5% and net profit increases from 1.3% to 1.5% for 12M16 to 12M17.

One key thing to note is non-current liabilities which went down and net bearing interest also went down from 41,026 to 30,729 for 30Sep16 to 30Sep17. Net Interest Bearing Debt to Equity Ratio decreases from 0.33 to 0.23 for 30Sep16 to 30Sep17.

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