ThaiBev’s Q2 earnings dip 1% to about $224.19m

Blame it on weak F&N/FCL share results.

Thai Beverage PLC’s (ThaiBev) closed a lukewarm quarter, as profit after tax and minority interests (PATMI) dipped 1% YoY to THB5.8b (roughly $224.19m) in Q2 due to lower contribution from Fraser & Neave (F&N)/Frasers Centrepoint Limited (FCL) during the quarter.

According to a report by OCBC, stripping out F&N/FCL, net profit surged 19.1% YoY. For the half-year, PATMI jumped 16% YoY to THB12.4b ($479.3m). The company announced a higher interim dividend of 0.20 THB/share, in contrast to 0.15 THB/share.

Losses for ThaiBev's non-alcoholic beverages segment narrowed by 64.3% YoY to THB217m ($8.39m) in Q2, stripping out the exceptional gain on sales of Sermsuk's land and building in 2Q15.

"The on-going efforts to leverage on ThaiBev’s strong distribution network to extend presence in Thailand as well as production capacity expansion plans bode well for this segment’s long term growth," OCBC stated.

Meanwhile, Q2 revenue for ThaiBev's alcoholic segment inched up 0.7% YoY to THB24.3b. During the quarter, sales of white spirits surged while brown spirits tumbled on back of down-trading trends. OCBC noted Beer sustained its growth momentum—ThaiBev believes its market share has maintained at around the 40% level.

"We understand that its key competitor engaged in price discounting since May, while Chang has been pricing up slightly such that price parity between their products has been reached near the end of June onwards," OCBC revealed.

"Looking ahead, while there could be further impending moves from competitors, we expect Beer’s market share and performance to sustain for the year," it added.

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