ThaiBev 1Q17

Highlights

The fiscal year from "1 January to 31 December" is changed to "1 October to 30 September". The new fiscal year for 2016 was 9 months to 30th September 2016. The fiscal year 2017 will be 12 months from 1 October 2016 to 30 September 2017.


There is a decline in domestic consumption during mourning period in Thailand. Total sales revenue dropped 8% by Baht 4,051 million. Thaibev is dominant in spirits market. Maintain growth in net profit, net profit excluding F&N/FCL increased 12.1% to Baht 6,138 million, net profit including F&N/FCL jumped 29.1% to Baht 7,743 million. There is lower net loss in non-alcoholic segment.


Financials

The way business owners approach management is different from scholars running a corporation. Not a lot of scholars know how to run a business as they are not entrepreneurs to start with. If you look at the financial statements of Thaibev, you will realise the cost control aspect is amazing unlike our Singapore companies. The selling expenses, cost of goods sold, administrative expenses are decreased. Total expenses decreased from 44,857,176 in 2015 to 39,655,839 in 2016.


There is a consistent positive free cashflow, a constant paydown of debts for financing and the company is seating on a heap of cash. The cash is used to acquire companies like Vinamilk.


Conclusion

ThaiBev is a brilliant company. Good quarter results. The market has already reflected on this. Today the share price increases by 5%.