ThaiBev nine-month EBITDA rises 7.2% to US$1.5B
ThaiBev’s spirits and food businesses recorded growth, while beer and non-alcoholic beverage revenue declined amid currency effects and softer Thai market conditions.
SINGAPORE – Thai Beverage (ThaiBev) has reported a 7.2% increase in nine-month operating earnings, supported by growth across its businesses and effective brand investment and marketing activities.
The Singapore-listed company, which brews Chang beer, recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) of 48.29 billion baht (US$1.46 billion) for the nine months ended June 30, compared with 45.03 billion baht a year earlier.
Sales revenue declined to 254.04 billion baht from 258.62 billion baht, with ThaiBev citing unfavourable foreign exchange translation effects and a slight slowdown in the Thai market.
The spirits business, its largest profit contributor, posted a 6.6% increase in nine-month operating profit. Revenue rose 1.7% to 94.4 billion baht, driven by what the company described as the “solid performance” of its international business.
Beer revenue fell 5.3% year-on-year to 91.3 billion baht, while revenue from non-alcoholic beverages declined 3% to 47.8 billion baht. ThaiBev attributed the beer decline to foreign exchange translation effects and softer conditions in Thailand.
The company’s food business recorded 3% revenue growth to 17.1 billion baht. ThaiBev said the increase was supported by the “improved performance” of its quick-service restaurant business despite cautious consumer spending and economic uncertainty.
Revenue from other businesses increased 1% to 3.66 billion baht (US$142.74 million).
ThaiBev’s results come as tourism activity in Thailand shows signs of slowing. Foreign arrivals reached 18.51 million between January 1 and August 1, down 3.19% from the same period a year earlier.
The company’s performance also comes amid reports that ThaiBev is considering selling its Kentucky Fried Chicken (KFC) restaurant franchise business in Thailand. The company is reportedly working with Bank of America to assess interest from potential buyers, according to people familiar with the matter.
ThaiBev has not publicly confirmed a sale of the KFC business.
The company said growth across its businesses was supported by brand investment and marketing activities during the nine-month period, while its financial results reflected currency translation effects and conditions in the Thai market.
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