Thai Beverage: FY24 Net Profit Growth and Financial Analysis

Report Date and Financial Year

The report covers the financial year ending on 30 September 2024.

Business Description

Thai Beverage Public Company Limited (“ThaiBev”) operates in the food and beverage sector, with a diverse range of business segments including Spirits, Beer, Non-Alcoholic Beverages (NAB), and Food. The company has a significant presence in Thailand and Vietnam, with additional operations in Myanmar and Cambodia.

Industry Position and Market Share

ThaiBev holds a strong market position in Southeast Asia, particularly in Thailand and Vietnam. The company competes with other large beverage producers and has maintained a competitive edge through its extensive product portfolio and distribution network.

Revenue Streams and Customer Base

The company’s revenue streams are diversified across its core segments: Spirits, Beer, NAB, and Food. The Spirits segment contributes the largest share of revenue, followed by Beer, NAB, and Food. ThaiBev’s customer base includes both retail and wholesale clients, supported by a robust supply chain.

Financial Statement Analysis

Income Statement

Sales revenue increased by 2.2% to Baht 340,289 million, with a net profit increase of 0.6% to Baht 35,270 million [[5]]. The Beer segment showed significant improvement, with a 3.9% increase in net profit [[5]].

Balance Sheet

Total assets as of 30 September 2024 were Baht 612,395 million, with current liabilities of Baht 89,552 million and non-current liabilities of Baht 140,386 million [[20]]. The company’s net interest-bearing debt increased by Baht 4,722 million [[21]].

Cash Flow Statement

While not explicitly detailed in the report, the financial ratios indicate increased efficiency in managing inventory and receivables [[22]].

Dividend Information

The company declared a final dividend of Baht 0.47 per share, with a total dividend for the year of Baht 0.62 per share [[6]].

Key Findings

Strengths

• Diverse revenue streams across multiple segments.
• Strong market position in Southeast Asia.
• Increased sales revenue and net profit in FY24.

Risks

• Increased finance costs and tax expenses impacting the Spirits segment [[5]].
• Higher operating expenses in the Food segment leading to a decline in net profit [[5]].

Special Activities

ThaiBev completed a share swap transaction to increase its interest in Fraser and Neave, Limited, and issued debentures to manage existing debts [[3]].

Investment Recommendations

If Currently Holding the Stock

Investors should consider holding their ThaiBev shares due to the company’s stable revenue growth and strategic initiatives aimed at improving profitability.

If Not Currently Holding the Stock

Potential investors may find ThaiBev an attractive option due to its diversified business model and strong foothold in key markets like Thailand and Vietnam.

Disclaimer

This analysis is based solely on the information provided in the FY24 financial report and should not be considered as a comprehensive investment recommendation. Investors are advised to conduct their own research and consider their financial goals before making investment decisions.

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