ThaiBev Reports THB192bn Revenue for 9M 2021
The board of directors (the “Board”) of Thai Beverage Public Company Limited (“ThaiBev”, and together with its subsidiaries, the “Group”) today provided an update on the Group’s business during the nine months ended 30 June 2021 (“9M21”).
SPIRITS – In 9M21, the Group’s spirits business generated sales revenue amounting to Baht 91,630 million, an increase of 3.6% while total sale volume of spirits increased 4.2%. Although there were COVID-19-related measures such as the temporary closure of entertainment venues and restaurants in Thailand, the business is proven to be resilient as a result of strong spirits product portfolio with variety of segmentation and off-premise consumption nature. Our spirits business performance in Myanmar remained stable due to our strong brand and market shares in whisky segment, and the Company believes that the business in Myanmar remains solid and continue to generate strong positive cashflow. The spirits business’ EBITDA grew by a satisfactory 9.5% to Baht 23,605 million, driven by strength of our product portfolio and selling expenses reduction in both Thailand and Myanmar.
BEER – The Group’s beer business was also impacted by the COVID-19 related measures in Thailand and Vietnam. Total sales volume decreased 1.1% YoY due to a decrease in SABECO’s sales volume. Excluding SABECO, the business’ sales volume increased YoY despite the ongoing closure of entertainment venues and restaurants in Thailand as part of the country’s COVID control measures. The business recorded sales revenue amounting to Baht 80,265 million in 9M21, an increase of 1.2% YoY. As a result of the sales team’s area management selling program to drive volume growth, and effective cost control measures, the beer business’ EBITDA improved 20.4% to Baht 10,631 million.
NON-ALCOHOLIC BEVERAGES (NAB) – The Group’s NAB business recorded sales revenue amounting to Baht 11,688 million in 9M21, down 6.4% YoY as a result of a decline in sales volume of 8.6%. The NAB business continued to prudently manage its costs, thereby reducing advertising and promotion expenses. The cost control measures enabled the business to report EBITDA amounting to Baht 1,629 million, an increase of 15.2% comparing to EBITDA excluding insurance claim on property damaged from fire incident of Oishi beverage
factory.
FOOD – In 9M21, the food business was directly impacted by COVID-19 and reported sales revenue amounting to Baht 8,649 million, down 12.9% YoY as a result of the Thai government’s restrictions on dining-in at restaurants and other food outlets in order to contain COVID-19 infection. The continued restaurant cost control measures, as well as the initiative to manage employees to increase productivity, resulted in an improvement in the business’ EBITDA of 2.9% YoY to Baht 773 million. In order to cope with the challenging business environment during COVID-19 for food segment, the team has put more focus on take away and home delivery channels to ride on the current situation opportunities, while dine-in is still limited.
Financial Update
In June 2021, the Group issued debentures with an aggregate principal amount of Baht 40,000 million, which comprises the initial required funding amount of Baht 35,000 million and a greenshoe option of Baht 5,000 million. The debentures were more than 1.52 times oversubscription of an aggregate principal amount. The debentures carry an average annual coupon rate of 1.95% and have an average tenor of 4.10 years.
The proceeds from the debenture issue were used for the repayment of a Baht 40,000 million bridging loan facility that will mature in March 2023.
UNAUDITED RESULTS FOR THE NINE MONTHS ENDED 30 JUNE 2021
The Board wishes to remind shareholders and investors that the above business update has been prepared based on the Group’s internal records and management accounts, and has not been reviewed or audited by independent auditors.