In mid February, Thai Beverage Public Company Limited (SGX: Y92)released its first quarter earnings update for its fiscal year ending 30 September 2018 (FY2018). The reporting period was from 1 October 2017 to 31 December 2017.
As a quick introduction, Thai Beverage is a company operating in four different segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages. Given that the company has four different businesses, I thought it would be useful to have a look at the performance of the individual segments.
In previous articles, I had discussed the Spirits and Beer segments. In this article, I will be running through the Non-Alcoholic Beverages segment, which accounted for 9.0% of Thai Beverage’s total revenue in the first quarter of FY2018, but -4.8% of total net profit (the segment was loss-making).
What the Non-Alcoholic Beverages segment does
The Non-Alcoholic Beverages segment focuses on the production and sales of water, ready-to-drink coffee, energy drinks, green teas and more.
The financial performance
The table below shows a condensed income statement for the Non-Alcoholic Beverages segment for the first quarter of FY2018:
Source: Thai Beverage FY2018 first quarter earnings presentation
Although the segment continued its loss-making ways in the reporting quarter, there was actually progress. Revenue grew by 5.8% year-on-year on the back of a 9% increase in sales volume (water and carbonated soft drinks drove the increase in volume).
The EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin and net profit margin both improved as well, due to lower advertising and promotional expenses. In all, the sgement’s net loss narrowed from THB 239 million a year ago to THB 227 million.
- Singapore’s Top 5 Dividend-Paying Blue-Chip Stocks
- 3 Blue-Chip Companies That Have Bought Back Their Shares This Week
- Which Singapore-Listed Bank Is Cheaper Than the Market Now?
- It’s a Wrap: The Top 3 and Bottom 3 Blue-Chip Stocks for February
- How to Win in Volatile Markets
- The Good And Bad That Investors Should Know About Sheng Siong Group's Latest Results
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned.