Thai Beverage's Q1 Profit Declines Due to Spirits Struggles
(Reuters) - Singapore-listed Thai Beverage posted a marginal decline in first-quarter profit on Thursday, as weakness in its spirits business offset growth in beer and non-alcoholic beverage segments.
ThaiBev, one of Southeast Asia's largest beverage makers, reported earnings before interest, tax, depreciation, and amortization (EBITDA) of 16.44 billion baht ($486.68 million) for the quarter, compared with 16.58 billion baht a year ago.
The spirits business, one of the firm's biggest profit generators, saw a 4.8% annual drop in sales revenue to 32.24 billion baht due to higher raw material and marketing costs.
However, the beer business, which produces and distributes the Chang lager, posted a 16.6% increase in EBITDA for the quarter, while earnings from the non-alcoholic beverages unit rose nearly 16%.
The results come at a time when ThaiBev, which is owned by billionaire Charoen Sirivadhanabhakdi is looking to divest its real estate assets and become a pure-play drinks and food company.
($1 = 33.7800 baht)
(Reporting by Sneha Kumar and Nichiket Sunil in Bengaluru; Editing by Mrigank Dhaniwala)
