(Reuters) -Singapore-listed Thai Beverage reported a 7% fall in annual profit on Tuesday, hurt by persistent weakness in its core spirits division alongside a decline in earnings from its food business.
The Bangkok-based firm said softening consumer sentiment across its key markets dented its annual performance, with sales revenue down more than 2% to 333.29 billion baht.
A slow post-pandemic recovery in Thailand’s crucial tourism sector, a key driver of on-premise alcohol consumption, continued to drag on its spirits business.
Spirits, its biggest earnings contributor, were hardest hit, as subdued tourist arrivals and cautious household spending curbed on-premise drinking, adding to margin pressure from higher raw material and marketing costs.
The company is one of Southeast Asia’s largest beverage makers, with its business consisting of four segments: spirits, beer, non-alcoholic and food.
ThaiBev, which brews the popular Chang lager, reported profit attributable of 25.36 billion baht ($786.11 million) for the year ended September 30, compared with 27.22 billion baht a year earlier.
The company’s spirits business posted profit attributable of 19.17 billion baht, down from 20.77 billion baht last year.
ThaiBev’s food business swung to a loss of 168 million baht for the year, as increased operating expenses from aggressive restaurant expansion weighed on its earnings.
It also declared a final dividend of 0.47 baht per share, unchanged from last year.
($1 = 32.2600 baht)
(Reporting by Rajasik Mukherjee and Nikita Maria Jino in Bengaluru; Editing by Tasim Zahid)
