ThaiBev Reports Mixed Half-Year Performance: Beer Sales Up, Overall Profitability Down

The Thai beverage giant sees modest revenue growth in the first six months but a notable dip in net profit, driven by challenges in spirits and non-alcoholic segments despite strong beer performance

 

Thai Beverage Public Company Limited (ThaiBev), a leading drinks conglomerate in Thailand and across Asia, has released its results for the first six months of its fiscal year (October 2024 to September 2025), revealing a marginal increase in sales revenue but a significant decline in overall net profit.

 

For the second quarter, the group posted sales revenue of 85.35 billion baht, a slight decrease of 0.6% year-on-year. Net profit for the quarter stood at 8.08 billion baht, down by 11.8%.

 

Looking at the broader six-month picture, ThaiBev generated sales revenue of 177.62 billion baht, representing a modest 1% increase.

 

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) fell by 5.3% to 31.11 billion baht, while net profit saw a more substantial drop of 9.2% to 17.77 billion baht.

 

The company highlighted its "Beer" and "Non-Alcoholic Beverages" divisions as key drivers of revenue.

 

The decline in net profit was primarily attributed to reduced sales in the spirits business, increased raw material costs, and headwinds faced by the non-alcoholic beverage and food segments.

 

In contrast, the beer division reported an increase in net profit.

  

Q2 Performance: Non-Alcoholic and Food Sectors Contract

A detailed breakdown of the second-quarter performance by business segment shows:

Spirits: Sales revenue rose by 2.1% to 32.28 billion baht, while net profit decreased by 5.5% to 5.76 billion baht. The sales growth was driven by higher domestic and international consumption, but profitability was impacted by rising raw material costs and increased brand investment and marketing initiatives.

Beer: Sales revenue saw a slight dip of 2.4% to 30.09 billion baht, with net profit also decreasing by 4.1% to 1.23 billion baht.

Non-Alcoholic Beverages: Sales revenue fell by 1.9% to 16.48 billion baht, and net profit experienced a significant drop of 33.5% to 1.26 billion baht, compared to 1.90 billion baht in the same period the previous year.

Food: Sales revenue edged down by 0.9% to 5.46 billion baht, with net profit plummeting by 97.5% to just 3 million baht, from 118 million baht in the corresponding period last year.

 

 

 

Beer Business Shows Strength in First Half

The performance for the first six months of the fiscal year reveals:

Spirits: Sales revenue declined by 1.5% to 64.52 billion baht, with net profit falling by 10.3% to 11.60 billion baht. The sales decrease was linked to a slow start in the first quarter, with second-quarter improvements insufficient to offset the overall trend. Profitability was affected by higher raw material costs and brand/marketing investments.

Beer: Sales revenue increased by 3% to 66.20 billion baht, and net profit saw a robust increase of 19% to 3.15 billion baht, driven by higher sales volumes, reduced raw material costs, and improved production efficiency.
  

Non-Alcoholic Beverages: Sales revenue grew by 2.5% to 33.44 billion baht, but net profit decreased by 11.3% to 3.11 billion baht. Despite higher sales volumes across all sub-categories and lower packaging costs, the segment faced increased tax burdens.

Food: Sales revenue saw a marginal increase of 0.7% to 11.15 billion baht, while net profit fell sharply by 61% to 124 million baht, due to higher raw material and labour costs, increased marketing expenditure, and depreciation from restaurant expansion.

 

 

Volume Analysis: Beer Consumption Rises, Non-Alcoholic Sector Sees Broad Growth

In terms of sales volume during the second quarter, the spirits division saw a 2.6% increase to 174 million litres, while soda decreased by 0.8% to 10 million litres.

 

Beer volume grew by 2.6% to 567 million litres. Chang drinking water and soda volumes decreased by 15.6% to 21 million litres.

 

Non-alcoholic beverages overall saw a 0.9% increase to 838 million litres, with ready-to-drink tea (Oishi and Jubjai) down by 2.8% to 86 million litres, drinking water up by 2% to 297 million litres, carbonated soft drinks down by 1.1% to 72 million litres, FNL beverages down by 0.7% to 221 million litres, dairy products up by 4.3% to 160 million litres, and other beverages (energy and sports drinks) up by 2.5% to 2 million litres.

 

For the first half of the year, spirits volume decreased by 1.9% to 336 million litres, while soda increased by 1.2% to 21 million litres.

 

Beer volume saw a significant increase of 7.4% to 1,240 million litres, and Chang drinking water and soda volumes increased by 12.4% to 48 million litres.

 

Non-alcoholic beverage volume increased by 4.1% to 1,667 million litres, with ready-to-drink tea up by 3.2% to 173 million litres, drinking water up by 3.9% to 587 million litres, FNL beverages up by 3% to 434 million litres, dairy products up by 5.3% to 323 million litres, and other beverages up by 4.6% to 3 million litres.

 

In terms of revenue contribution, the beer business accounted for the largest share at 37.3%, followed by spirits at 36.3%, non-alcoholic beverages at 18.8%, food at 6.3%, and other segments at 1.4%.

 

However, "Spirits" remained the largest contributor to net profit at 65.3%, followed by beer at 17.7%, non-alcoholic beverages at 17.5%, food at 0.7%, and other segments with a net loss of 1.2%.

(2025/05/10-00:00)