Beverage(US:TBVPY)2021-11-26 19:18Financial Data and Key Metrics Changes - Total sales revenue for the year ended September 30, 2021, was 240,543 million baht, a decline of 5.1% compared to the previous year due to the severe impact of COVID-19 [5] - Net profit increased by 4.9% year-on-year to 27,339 million baht, attributed to non-recurring costs and deferred tax utilization related to business restructuring [6] - The proposed dividend for fiscal year 2021 is 12,559 million baht, or 0.55 baht per share, which is higher than the previous year's 0.46 baht per share [6] Business Line Data and Key Metrics Changes - The spirits business generated sales revenue of 115,055 million baht, a decrease of 1.9% year-on-year, with a 1.8% decline in total sales volume [7] - The beer business recorded sales revenue of 99,157 million baht, a 7.2% decrease year-on-year, primarily due to lower sales volume from strict COVID-19 measures [7] - The non-alcoholic beverages business saw sales revenue of 15,205 million baht, a decrease of 6.6% year-on-year, but net profit from normal operations rose 51% to 548 million baht due to cost management [9] - The food business recorded sales revenue of 11,280 million baht, a 14.4% decrease year-on-year, resulting in a net loss of 488 million baht [10] - International business sales revenue was 57,394 million baht, an 8% decrease year-on-year, with an 11% decline in beer sales offset by a 5% increase in international spirits sales [10] Market Data and Key Metrics Changes - Total sales volume decreased by 11.1% year-on-year, including SABECO sales, and by 4.4% year-on-year excluding SABECO sales [8] - The beer business in Thailand reported an increase in net profit due to cost-saving initiatives despite an overall decline [8] Company Strategy and Development Direction - The company remains confident in its business in Myanmar despite economic instability, focusing on controlling receivables and adjusting prices to manage costs [19][23] - Management is considering price increases across all business units to mitigate cost pressures from rising commodity prices [26][30] - The company aims to enhance its market share through prudent advertising and promotion spending, learning from past activities during COVID-19 [75][80] Management's Comments on Operating Environment and Future Outlook - Management noted that the spirits business remains resilient, with expectations of improved sales as COVID-19 restrictions ease [32][64] - The company anticipates a gradual recovery in the market, particularly in the spirits segment, as economic activities resume [64] - There is cautious optimism regarding the Myanmar market, with expectations of future growth despite current challenges [23] Other Important Information - The company has restarted the IPO process for its beer business, with timing still uncertain due to previous COVID-19 impacts [38][90] - Forward buying of malt and molasses has been strategically managed to ensure supply stability [92][93] Q&A Session Summary Question: Update on the situation in Myanmar - Management indicated that COVID-19 cases have decreased and vaccination rates have improved, but economic instability remains a concern [17] Question: Outlook on Myanmar market growth - Management believes there are still opportunities for growth in Myanmar despite current challenges, viewing it as an integrated market for future investment [23] Question: Concerns about commodity prices affecting gross margins - Management acknowledged cost pressures from rising commodity prices but emphasized their commitment to managing these costs effectively [24][30] Question: Expectations for sales improvement in Q1 FY2022 - Management expects sales to improve as restaurants reopen, but full recovery may take longer due to ongoing restrictions on bars [32][64] Question: Updates on beer IPO - The IPO process has restarted, and management is working with advisors to move forward [38] Question: Market share performance and competitive response - Management reported an increase in market share despite cost-saving measures, with plans to monitor competitor actions closely [51][76] Question: Spirits business performance in Q4 - Management noted a significant impact from COVID-19 restrictions on spirits consumption, but they expect recovery as restrictions ease [47][62]