Beverage(US:TBVPY)2020-11-26 14:25Financial Data and Key Metrics Changes - Total sales revenue for the year ended September 30, 2020, was ฿253,481 million, a decline of 5.2% compared to the previous year due to decreased sales in beer, non-alcoholic, and food businesses impacted by the COVID-19 pandemic [4] - Net profit was ฿26,055 million, a decrease of 0.1% year-on-year, influenced by a decline in net profit from F&N and FPL, along with non-recurring costs and deferred tax utilization related to business restructuring [5] - Net profit from normal operations increased by 10.1% year-on-year to ฿28,725 million [5] - The Board of Directors proposed a dividend of ฿11,553 million or ฿0.46 per share, representing a 51% payout ratio [6] Business Line Data and Key Metrics Changes - The spirit business generated sales revenue of ฿117,297 million, a 2.2% improvement year-on-year, with net profit of ฿22,271 million, an increase of 14.7% year-on-year [7][8] - The beer business recorded sales revenue of ฿106,871 million, down 11.3% year-on-year, with total sales volume decreasing by 12.7% due to COVID-19 impacts [9] - The non-alcoholic beverage business generated sales revenue of ฿15,281 million, a 3.1% decline year-on-year, but reported a net profit of ฿656 million, up 165.7% from a net loss last year [10][11] - The food business recorded sales revenue of ฿13,172 million, down 15.4% year-on-year, resulting in a net loss of ฿101 million [12] - The international business recorded sales revenue of ฿62,627 million, down 18% year-on-year, primarily due to a 21% decline in beer sales [13] Market Data and Key Metrics Changes - The domestic beer business reported satisfactory profit growth due to prudent cost control and effective management of the COVID-19 situation in Thailand [9] - The international spirits sales revenue decreased by only 1% year-on-year, indicating resilience despite the pandemic [13] Company Strategy and Development Direction - The company is focusing on penetrating the sub-premium market with the launch of Saigon Chill, aiming to compete with established brands like Heineken's Tiger [22][23] - The strategy includes leveraging existing distribution channels to introduce new products while maintaining margins through brand diversification [24][28] Management Comments on Operating Environment and Future Outlook - Management noted improvements in Vietnam's COVID-19 situation, with restaurants reopening and events resuming, although caution is advised regarding future performance due to ongoing economic impacts [16][17] - The last quarter showed month-over-month improvement, but management anticipates some softness in the coming months [17][18] Other Important Information - The company implemented cost control measures and negotiated rent reductions to mitigate the impact of the pandemic on its food business [12] Q&A Session Summary Question: Current situation in Vietnam regarding THBEV - Management indicated that Vietnam has handled the COVID situation well, with improvements in restaurant operations and events, although not at pre-pandemic levels [16][17] Question: Saigon Chill product launch and market penetration - Management expressed excitement about Saigon Chill, noting positive consumer feedback and the ability to sell in existing Saigon Special outlets, which opens up new opportunities [22][24] Question: Protecting market share in the mainstream segment - Management acknowledged the competitive pressure in the mainstream segment but emphasized their strategy of using a diverse brand portfolio to maintain market share without resorting to discounting [27][28]