Thailand: ThaiBev reports 7% fall in annual profit

Singapore-listed Thai Beverage Plc reported a 7% fall in annual profit on November 25, hurt by persistent weakness in its core spirits division alongside a decline in earnings from its food business.

The Bangkok-based maker of Chang beer, Mekhong and SangSom rum said softening consumer sentiment across its key markets dented its annual performance, with sales revenue down more than 2% to 333.3 billion baht.

A slow post-pandemic recovery in Thailand’s crucial tourism sector, a key driver of on-premises alcohol consumption, continued to drag on its spirits business.

Spirits, its biggest earnings contributor, were hardest hit, as subdued tourist arrivals and cautious household spending curbed on-premises drinking, adding to margin pressure from higher raw material and marketing costs.

The company is one of Southeast Asia’s largest beverage makers, with its business consisting of four segments: spirits, beer, non-alcoholic beverages and food. Its restaurant operations include the Oishi and KFC chains in Thailand.

ThaiBev reported profit attributable of 25.36 billion baht for its financial year ended Sept 30, compared with 27.22 billion baht a year earlier.

The spirits business posted profit attributable of 19.17 billion baht, down from 20.77 billion last year.

ThaiBev’s food business swung to a loss of 168 million baht for the year, as increased operating expenses from aggressive restaurant expansion weighed on its earnings.

It declared a final dividend of 0.47 baht per share, unchanged from last year.