Thai Beverage Public Company (Y92) Q4 2024 earnings summary

Executive summary

• Sales revenue rose 2.2% year-over-year to THB 340,289 million, with growth across all beverage and food segments.

• Net profit reached THB 35,270 million, a 0.6% increase year-over-year, with gains in beer, non-alcoholic beverages, and other businesses, offset by declines in spirits and food.

• Completed a share swap, increasing stake in Fraser & Neave Limited (F&N) from 28.31% to 69.64%, making F&N a subsidiary and ceasing interest in Frasers Property Limited.

• EBITDA increased 4.5% to THB 61,650 million, driven by operational efficiencies in Beer and Non-alcoholic Beverages.

• The Group completed several acquisitions, including Bevfood Holdings Pte. Ltd. and Cocoaland Holdings Berhad.

Financial highlights

• Gross profit increased 4.6% to THB 103,208 million; EBITDA margin at 18.1%, net profit margin at 10.4%.

• Spirits business sales revenue rose 0.8% to THB 120,728 million; net profit declined 4.6% to THB 21,385 million due to higher costs and marketing spend.

• Beer business sales revenue increased 2.4% to THB 126,332 million; net profit up 3.9% to THB 5,221 million, driven by tourism rebound and operational efficiencies.

• Non-alcoholic beverage sales revenue up 4.2% to THB 65,802 million; net profit up 9.3% to THB 5,934 million, aided by lower packaging costs and efficiency.

• Food business sales revenue up 5.5% to THB 22,288 million; net profit fell to THB 301 million due to higher costs and investments.

Outlook and guidance

• Beer business expects continued positive trends in cost efficiency and SG&A, with Vietnam's cost of goods expected to decline as high-cost inventory runs out by Q1 next year.

• Brown spirits anticipate low single-digit growth in the coming months after a period of decline.

• The Group expects continued growth in Cambodia and further utilization of its expanded sales and distribution network following recent acquisitions.

• Management remains focused on leveraging synergies from the F&N Group integration and expanding in Southeast Asia.

• No forward guidance on price increases or specific growth targets for non-alcoholic beverages.