Wednesday, 28 February 2018

Watchlist: ThaiBev Y92



"Operating profit was THB 2,794,794,000 compared with THB 7,172,763,000 a year ago. Net operating profit was THB 3,165,037,000 against THB 7,337,061,000 a year ago. Profit before income tax expense was THB 3,993,173,000 against THB 9,149,891,000 a year ago. Profit attributable to owners of the company was THB 2,911,892,000 against THB 7,714,855,000 a year ago. Basic and diluted earnings per share were THB 0.12 against THB 0.31 a year ago. Net cash from operating activities was THB 5,789,946,000 against THB 7,797,559,000 a year ago." First Quarter ended Dec 17 [Source: SGX]



Price watch points as indicated above and I shall wait for the price drop to stabilize. In the meantime, I will do some reading about its earnings and how the company strategizes to overcome headwinds.

***
Takeaway from its annual report 2017 (FYE Sep 17)

Revenue
57% from spirits
30% from beer
9% from non-alcoholic beverage
4% from food

Vision 2020

Growth
We aim to solidify ThaiBev’s position as stable and
sustainable largest beverage company in Southeast
Asia, and create return to shareholders.

Diversity
To support and sustain ThaiBev’s growth, we plan to
diversify our revenue streams, increasing revenue
contribution from non-alcoholic beverages and the sale
of products outside of Thailand.

Brands
By streamlining ThaiBev’s businesses into three
product groups (spirits, beer, and non-alcoholic beverage)
and identifying core brands within each, as well as
focusing on primary and secondary markets with the
greatest growth potential, we look to expand the
business via a consumer and market-driven approach.

Reach
To realise the potential of ThaiBev’s core brands,
robust and efficient routes to all markets are required.
Accordingly, we seek to build on our market leading
business processes and supply chains to strengthen
existing distribution networks, establish new ones, and
also enter into partnerships with third-party distributors
when appropriate.

Professionalism
We strive to ensure that we have a diverse and high
performance workforce, and that the teams behind all
three product groups work together seamlessly,
leveraging cross-product group synergies where applicable,
further strengthening our long term potentials.

$$$
- Revenue from sales stayed flat. We shall see how it performs this year with its new acquisitions.
- Net profit margin increased.
- Net cash from operating activities increased.


*** I felt quite positive about the long-term outlook of this stock. The issue now is about picking it up at the right price. ;)

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