ThaiBev profits up 82% to $1.42b in Q4

Thanks to a one-off gain from Fraser & Neave's Vinamilk investment.

Thai Beverage Public Company Limited (ThaiBev) pops the champagne as its profits surged 82% YoY to $1.42b (THB34.5b) in Q4.

DBS Equity Research said ThaiBev got one-off fair value gains of $350.13m (THB8.5b) recognised by its associate Fraser & Neave for its investment in Vinamilk.

Excluding this gain, core net profit rose 4.6% YoY to $1.07b (THB26b).

"This was despite a relatively slow first 9M2017 due to the mourning period in Thailand," said DBS analyst Andy Sim.

Meanwhile, operating profit in Q4 surged 73.5% YoY to $263.62m (THB6.4b) thanks to a 23.4% increase in revenue.

Revenue increased thanks to growth across all business segments, despite being a seasonally weak quarter.

"This, in our view, was largely due to trading loading by distributors in anticipation of excise increases, and in part on expectations of recovery in consumer sentiment," Sim said.

ThaiBev proposed a final dividend per share of $1.9 (THB0.47). Including interim DPS of 80 cents (THB0.2), total DPS for 2017 amounted to $2.8 (THB0.67), implying a payout ratio of 65% on core profits.