ThaiBev reports 8.6% increase 1Q 2010

Thai Beverage Public Company Limited said its 1Q 2010 saw total sales revenue of 30,015 million Baht ($925.25 million), an increase of 8.6% in comparison with the same period last year.

Net profit totaled 2,511 million baht, a decrease of 17.2% due to the impact of increased promotional activities across all business lines.

Thai economy continued to improve in the first two months of 2010 following the global economic recovery.

However, the increased severity of the political unrest since mid March weighed consumers’ confidence down.

Most consumers hesitated to spend, especially those residing in Bangkok whose spending for on-premise consumption declined as a result of political protests in several areas of the city.

Revenue from the beer business increased 8.3% to 8,585 million baht year-on-year due to an increase of retail prices to accommodate the excise tax rise in May 2009.

The total sales volume of beer decreased by 4.0% compared to double digit decline experienced in 2009.

ThaiBev’s spirits business saw sales revenue increase 5.6% to 18,970 million baht, with a 1.2% climb in sales volume.

The company’s top selling brown spirits such as Hong Thong and Blend 285 still enjoyed high volume growth due to their strong popularity among local drinkers.

Non-alcoholic beverages, food business and international business witness growth surge ThaiBev’s non-alcohol segment saw satisfactory sales growth of 42.3%, led by Oishi products, especially from the on-going lucky draw promotional campaign.