The Thai economy continued to seal growth amidst the rise in private consumption.
Thai Beverage bounces back into the black as its Q1 profits soared 150.7% YoY to $322.23m (THB7.41b) from $128.55m (THB2.96b). Its revenue also climbed 60% YoY to $3.15b (THB72.62b) from $1.98b (THB45.48b).
According to the firm, their revenue from spirits business jumped 28.6% YoY in Q1 to $1.38m (THB31.68m). They noted that the sales of spirits in China offset the decline in cased and bulk whisky sales mainly in the UK.
Meanwhile, ThaiBev’s beer business saw its revenue balloon 128.6% YoY to $1.43m. Moreover, revenue from its food business rose 63.9% YoY to $166,000 (THB3.81m) whilst revenue from its non-alchoholic business marginally inched up 1.1% to $181,000 (THB4.16m).
ThaiBev noted that the Thai economy continued to expand on the back of stronger tourism and private consumption figures. They believe that the campaigns ahead of the coming election in March 2019 will help to further stimulate the economy.
“The domestic beverage market showed signs of recovery as private consumption picked up,” the firm said. “This was partly due to an increase in farmers’ income levels and the government's welfare cards policy that underpinned consumer purchasing power.”
Beer production levels have also started picking up in the last few months of 2018 after 13 months of negative growth which bodes well for the F&B firm.
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