Thai Beverage Public Company Limited Financial Analysis – Net Profit Growth of 0.6%

Business Description

Thai Beverage Public Company Limited (ThaiBev) is a diversified beverage company with operations in spirits, beer, non-alcoholic beverages, and food segments. The company operates primarily in Southeast Asia, with significant market presence in Thailand, Myanmar, and Vietnam. ThaiBev’s core operations involve the production and distribution of alcoholic and non-alcoholic drinks, leveraging various brands to capture market share across different consumer segments.

Industry Position and Market Share

ThaiBev holds a strong position within the Southeast Asian beverage industry, competing with other major players such as Heineken and Carlsberg in the beer segment. The company has a significant market share in Thailand’s spirits market, with a robust performance in Myanmar. Its diverse portfolio and geographic reach provide a competitive advantage in capturing consumer demand across different markets.

Revenue Streams and Customer Base

ThaiBev’s revenue streams are diversified across its business segments, with significant contributions from spirits (Baht 120,728 million) and beer (Baht 126,332 million) businesses. The company serves a wide range of customers, including retail consumers and businesses in the hospitality sector. Its supply chain is enhanced through strategic partnerships and investments in related businesses.

Financial Statement Analysis

Income Statement

For the year ended 30 September 2024, ThaiBev reported a total sales revenue of Baht 340,289 million, a 2.2% increase from the previous year. The net profit stood at Baht 35,270 million, marking a 0.6% growth. The spirits business faced challenges with a decrease in net profit by 4.6%, while the beer and non-alcoholic beverages segments showed positive growth in net profit [[16]].

Balance Sheet

As of 30 September 2024, ThaiBev’s total assets were Baht 527,593 million, a decrease of 13.8% from the previous year, mainly due to a reduction in investment in associates and goodwill [[20]]. The company’s total liabilities slightly decreased to Baht 298,538 million, maintaining a stable financial position.

Cash Flow Statement

The company generated a net cash inflow from operating activities of Baht 38,079 million. However, there was a net cash outflow from financing activities, primarily due to dividend payments and interest expenses [[21]].

Dividends

ThaiBev has proposed a dividend payment of Baht 0.62 per share for 2024, with an interim dividend of Baht 0.15 per share already paid, and the remaining Baht 0.47 per share to be paid on 28 February 2025 [[25]].

Key Findings and Recommendations

Strengths

• Strong market position in the Southeast Asian beverage industry.
• Diversified revenue streams across multiple business segments.
• Stable cash flow from operating activities.

Risks

• Decreased net profit in the spirits and food segments.
• Exposure to geopolitical tensions and economic uncertainties in key markets.

Investment Recommendations

If you are currently holding ThaiBev stock, consider maintaining your position due to the company’s stable dividends and market presence. However, monitor the spirits segment closely for recovery signs. If you are not holding the stock, it may be prudent to wait for signs of improved profitability in the spirits and food segments before investing.

Special Activities

ThaiBev has engaged in strategic acquisitions and business combinations to strengthen its market position, including a share swap transaction to increase its stake in Fraser and Neave, Limited [[15]].

Report Date

The financial report is for the year ended 30 September 2024.

Disclaimer

The above recommendations are based on the financial data provided in the report and are subject to change with market conditions. Investors should perform their own due diligence before making investment decisions.

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