Beverage(US:TBVPY)2022-05-13 16:01Financial Data and Key Metrics Changes - Total sales revenue for the first half of 2022 was THB142,942 million, an increase of 8.9% compared to the previous year [4] - Net profit was THB18,356 million, a 14.2% increase year-on-year, driven by growth in beer, non-alcoholic beverages, food business, and associated companies, partially offset by a slight decrease in spirits profit [5] Business Segment Data and Key Metrics Changes - Spirits business generated sales revenue of THB65,186 million, a 2.1% increase year-on-year, with sales volume up 6.4%, but net profit decreased by 0.4% due to rising costs [7] - Beer business recorded sales revenue of THB51,939 million, a 14.7% increase year-on-year, with net profit increasing by 62.2% to THB1,377 million [8] - Non-alcoholic beverage business generated sales revenue of THB8,204 million, an 8.1% increase year-on-year, with net profit rising 31.5% to THB438 million [10] - Food business recorded sales revenue of THB7,688 million, a 30.6% increase year-on-year, with net profit increasing significantly by 261.5% to THB272 million [11] - International business recorded sales revenue of THB36,867 million, a 24% increase year-on-year, primarily due to a 29% increase in beer sales [12] Market Data and Key Metrics Changes - The international spirits business reported a 3% sales revenue growth, driven by the Myanmar market [13] Company Strategy and Development Direction - The company is committed to maintaining a full-year dividend policy of not less than 50% of net profit after reserves, subject to investment plans [6] - Management noted that the spirits business is experiencing a shift towards white spirits due to price adjustments, with expectations for brown spirit consumption to pick up in the second half of the year as social restrictions ease [20][23] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, anticipating improved sales in the brown spirits segment as pubs and bars reopen [23] - The company expects a better sugar crop this year, which will positively impact molasses costs and overall profitability [35][49] Other Important Information - Management will not address questions regarding the proposed spin-off of BeerCo Limited due to regulatory reasons [13][15] Q&A Session Summary Question: Outlook for the spirits business - Management indicated that sales volumes for spirits are among the highest since listing, with expectations for continued growth despite cost pressures [20] Question: Performance comparison between brown and white spirits - Management noted a shift towards white spirits due to price adjustments, with brown spirits experiencing a decline but expected to recover as restrictions ease [21][23] Question: Reasons for beer outperforming spirits - Management attributed beer's better performance to the earlier reopening of the Vietnam market compared to Thailand [30] Question: Update on raw material costs, specifically molasses - Management reported that molasses costs are lower this year due to improved sugar crop yields, with expectations for continued lower prices in the future [35][49] Question: Future price adjustments for beer and spirits - Management stated that while white spirits have seen price increases, they do not disclose future pricing strategies for beer and brown spirits [56] Question: A&P spending outlook - Management indicated that A&P spending will be considered based on market conditions and the reopening of the economy [65] Question: Confirmation of beer sales volume increases in Thailand and Vietnam - Management confirmed that beer sales volume increased approximately 3% in Thailand and 7% in Vietnam [40]