Thai Beverage Pcl Ord

Thank you for joining the Thai Beverage First Half 2024 Results Call. All participants have been placed in a listen-only mode. Later, we will conduct a question and answer session, and instructions will be given at that time. I will now hand over the call to the presenters, Ms. Nam Phon Angutsuturungzi, Thai BEF Head of Investor Relations, and the members of Thai BEF's Senior Management Team. Thank you.

good evening ladies and gentlemen welcome to thai barrage first half 2024 ended the 31st of march 2024 financial resource conference call i am namphoon angsutha langsi head of investor relations for the call tonight i will start with a summary of our first half results then we will open the line for q a with our management team here For the summary of the first half results, total sales revenue of the company for the first six months was 147,742 million baht, a slight decrease of 0.4% when compared to the same period last year. This was due to a decrease in sales revenue of the beer business. The net profit was $16,917 million, a decrease of 4.9% compared to the same period last year. This was due to a decrease in net profit of the food business and associated companies, partly offset by an increase in net profit of the spirits, beer, and non-alcoholic beverages business. Thai BEPS Board of Directors agreed to propose an interim dividend payment of 3,769 million baht or 0.15 baht per share, the same as last year. For the highlight of our first half results, in the first half of 2024, the split business generated sales revenue of 65,497 million, a 0.5% year-on-year increase Due to price adjustment and the portfolio mix, in light of the effective management and operational and administrative expenses, the business saw an improvement in net profit margin while maintaining a steady growth in net profit of 1.1% year-on-year, reaching the net profit of 12,975 million baht. The beer business recorded sales revenue amounting to 62,523 million baht in the first half of 2024, a decrease of 3.3% compared to the previous financial year. This was mainly due to a 5.7% year-on-year decline in total sales volume. However, net profit increased by a satisfactory of 7.1% to 2,713 million baht due to a decrease in key raw material packaging cost coupled with better production efficiency. The non-alcoholic beverage business recorded a 5.2% rise in sales revenue to 9,929 million baht in the first half. Sales revenue was lifted by a 6.3% increase in total sales volume across all categories, comprising drinking water, ready-to-drink tea, and carbonated soft drinks. Despite increased costs from brand investment and marketing activities, the business delivered a remarkable 24.6% growth in the net profit to 354 million baht due to lower cost of packaging and improved production efficiency. In the first half of 2024, the food business registered $9,856 million in sales revenue, a 5.2% increase compared to the same period last year. The increase was driven by the opening of the new stores to expand customer reach while production efficiency improved the increased cost of raw materials as well as the higher operational and administrative expenses especially in brand investment to support a sales growth weighted down on net profit which fell to 33 million baht So this is the summary of our first half 2024 financial results. Now we open the call to any questions on our results. Operator, please help open the line for Q&A.

Thank you. We will now begin the question and answer session. Participants with questions to pose, please press star 1 1 on your telephone keypad and you will be placed in the queue. To cancel the queue, please press star 1 1 again. So that was star 1 1 on your telephone keypad to register for any questions. And our first question comes from the line of Permada Damono from UBS. One moment, please, whilst we open your line for your question. Please go ahead. Your line is open.

Hi, good evening, management, and thank you for the opportunity to ask a question. I just have one quick question, and I'll go back to the queue. In your prior disclosure to the SGX on August 11, 2022, you mentioned that TyBev remains confident that BeerCo as one of the leading beer players in Southeast Asia and its growth potential offer a distinct and compelling growth strategy, and TyBev will continue to monitor market conditions, evaluate and explore opportunities to maximize shareholders' value, including where appropriate, reviewing the proposed spinoff listing at an appropriate time. Previously as well, at the annual information meeting with analysts, Kuntapana has said that in any sort of collaboration with international brewers, the guiding principle is that the TyBeth maintains a majority control Recently, of course, has said in its press release that it is open for an M&A opportunities in Southeast Asia. So, I'm not going to ask any questions about , but my question to management is that, you know, has that guiding principle remained the same, i.e., a majority control in any potential collaboration remains the guiding principle? or have that change.

Thank you.

It all remain the same. Remain the same. Yes.

Thank you. Thank you.

Thank you. And one moment for our next question, please. And our next question comes from the line of Divya Gangaha from Morgan Stanley. Please go ahead. Your line is open for your question.

Thank you very much. I had two questions. My first question was on the spirits business. I just wanted to understand the reasons for the 1% decline in spirits. And if you can comment, I guess the domestic volume decline would be probably higher than that, given that the international spirits business did well. Could you talk about, you know, the difference between white spirits and brown spirits, and where are you seeing pressure? And what would really need to happen for spirit volume growth to go back to positive, or if you're already seeing that in the current quarter? And my second question is on the domestic beer business. Could you update us on, you know, where market shares are now, given the fact that we've had mid to high single-digit volume growth? Has this been above industry and do you expect this momentum from mid to high single digit volume growth in Thailand there to continue? Thank you.

Hi Divya, the spread market in Thailand we have some slight decline from the vows spread I think the we had a good recovery last year coming from a bit lower base coming out of COVID. But then that recovery from the widespread consumption last year was a bit kind of fizzled out. This year, the economy itself doesn't look too good. So the widespread consumption, what we've seen, have started to experience a bit of a change. Widespread remain about the same for this period. We're not losing any widespread sale. So in terms of that in itself, yes, international markets still performing well with higher volumes and profits. So in combinations allow us to deliver a higher profits as well because in Thailand, we do a lot of price control, sorry, cost control to maintain our profitability.

Okay. Okay. Good evening. This is from Thailand. So according to your questions about the beer situation domestically, I mean, so I assume that you asked a question for Thailand. I think from the number that we have seen for the first quarter that probably the total market in Thailand quite a little bit slow I mean from the October to December however starting from January to March or even until now April and May we see the positive momentum for the overall of the bear market there are several factors number one we have seen that we have observed the number of the tourists that are increasing starting from the early of february starting of the many from the lunar new year that we observe more tourists coming to Thailand i mean chinese malaysian russian and uh and that number one and second one we also see the development of the of the i mean due to the how to say hotter temperature the increase of the temperature in thailand starting in the february and march so we see that there are more of the demand of the of the beverage for the for the for the beer business in thailand and the last one we also also see for the momentum of the atmosphere for the people in thailand that are due to all the more the events in march and april so which are uh i think for the q2 the all the overall beer market that increased compared to last year and then if you ask about what is our market share for the Chang beer and also for the total Thai beer we see that we are ahead of the competitors so we gain our market share in Q2 and we still see the positive momentum in the QT as well hope that answer all of your question

Yes, thank you. I just have one clarification regarding spirits. Could you just clarify that you said that white spirits volume is actually stable. So where we are seeing the decline is actually on the brown spirits. And if you can explain what the reasons for that is and what needs to happen to see that reverse.

Okay if yes again yes that's widespread in this first six month compared to the same six month period we have a stable volume slight increase actually the decline it's a it it's a mid single digit for browse rate because um last year we had a good good run on browse rate so it's kind of like um fits a while a bit back to the base so again the reason we believe is just people are not going out as much as just economy and not allowing people to spend more money that that's the reason what we believe in so What would have to take place? I think looking forward, we have a lot more tourist arrival into Thailand. Farm prices are good. So I think we're expecting a better economy and maybe looking out in terms of the government plan in terms of injecting more liquidity or more cash into the hands of consumers. That probably will make a change in the next outlook for the next 12 months if it really happens.

Got it. Thank you very much.

Thank you. And one moment, please, for our next question. And our next question comes from the line of from UOB research. Please go ahead. Your line is now open for your question.

Okay, hi management. So I just have two questions. So this question, my question is more related to raw material for both spirits and the bear segment. So just looking at the second quarter performance, I see that the cost of goods sold as a percentage of sale of revenue has fallen. So I just want to understand, is it because of, for the spirits, is it because of lower molasses cost or is it because of cost efficiencies and elsewhere? So then moving forward, I remember that the last meeting, I remember that the carbon yield of molasses was a bit lower. So do you see a higher raw material cost moving forward? And also for the beer segment, the same question, do you see that the cost of goods sold has dropped slightly? So do you see moving forward that the raw material cost will also drop? Yeah, and my second question, just a housekeeping question. Could you share a bit of colour on the contributions from associates? I see there's like a 70% drop year on year. Could you just clarify on what happened there and could you just share more colour on that? Yeah, and you have these two questions. Thank you.

Hi, Leighton. This is Lester here. Let me cover the second question about the associates. That's mainly from Vietnam. We had two big associates. One of them is Crown Saigon. It's a packaging company which we have a share in. They did turn in a larger loss compared to last year because of smaller orders. And then the second one is the Bentavia Group. They also turned in bigger losses compared to last year. And so it's these two associates that mainly contributed to the numbers. But moving forward, we are working with them. In fact, I just had to call the Crown. We are looking to have better results in the forthcoming quarters moving forward.

Good evening. Regarding to your questions about the trending of the COGS for the beer business. So for the beer in Thailand, as you see for the resource, the COGS to the percent of sale revenue, I mean, have the positive momentum to us, meaning at decreasing for the Q2. And mainly, I think that mainly from the malt price that we have very good team that manage the cost of the malt price and also for the packaging, both of the bottle and for the can. Thank you.

Okay. So on the spritz as a group, well, majority of contributions are coming from Thailand and the recent cost of goods inched down a bit as a percentage of sale. It's just some of the products product makes change in term of cost structure. It doesn't actually change by that much. We use a bit more used bottle in the second quarter than the first, but that's not significantly different. Input molasses costs for this season start to pick up a bit more than previous season as well because of the weather and the output of the sugarcane productions output in Thailand has reduced due to the weather as well. But we are expecting better output next year. So that should control our molasses costs going forward.

Okay. Thank you. Thank you so much. I'll come back to you.

Thank you. I think you're asking about the associate profit, the associate profit that reduce because there's only two major associate company of when we report and two major one, both of them are listed. One is Fraser and Eve Limited. Another one is Fraser Property Limited. You can check their earning release separately because they're both listed on SGX.

Okay, thank you.

Thank you, and one moment for our next question please. In the meantime, as a reminder, if you would like to ask an audio question, please press star 1-1 on your telephone keypad. Once again, that is star 1-1 on your telephone keypad if you would like to ask any questions. And our next question comes from the line of Titiat Nopaket from Partial Financial. Please go ahead. Your line is open for your question.

All right. Thank you. Can you hear me?

Yes, we can hear you.

Hello. Yes, I have three questions. Number one, could not have you did say that the international spirit is doing well. Can you confirm that the escalating situation in Myanmar so far has not had any negative impact on spirit production and spirit sales in Myanmar? And do you have any concerns about the political situation? Number two is on domestic beer. Can you give us some update or some color of the market share of performance at the new entrance for a bar with the one-day beer? It would be very helpful. Thank you. And then on the third question is on balance sheet. I noticed that you actually have positive free cash flow every quarter, but then the total of debt seems to be stay around 200 billion baht for the past several quarters. What is your policy on debt reduction?

Thank you. Just three questions.

so on Myanmar well our major subsidiary Grand Royal is the number one whiskey company in Myanmar we continue to report growth in both volumes and revenue we have a lot of price increase in the market because of cost structure that we're pushing through due to depreciating currency but on the quarter or quarter to quarter or six months to six months we are reporting a higher margin as well because our price increase uh existing the level of cost structure that was pushing through so i think from the reporting local currency we actually do have expanding margin and higher volumes so that it has been a very positive business in the past two years and in terms of the situation for in terms of situations of the political situation Myanmar I wouldn't probably want we shouldn't comment on the political side of thing but what challenges us as to as a business always be the case is that the country actually have less foreign currency so there's a lot more longer queue in terms of secure foreign currency to buy the input raw material so it takes longer in terms of weeks we're not talking about it should be maybe two weeks it could have been six weeks to eight weeks to work out the operational to bring in the input raw material. So those are actually been challenging and also securing foreign currency to pay for those. Those has been challenging as well. But we have a very good team, very good management. So we have overcome that very well and continue to report a good profitability and improving. Okay, that's from the business back.

thank you okay so uh regarding to your creations in number two that's talking about the market share in thailand so you just uh referring to uh ac news and reading so point number one that i just want to mention is our brand meaning a champion brand we have uh positive uh positive number and if we compare with the with the other competitors i think that now the market share is at the narrowest market share gap ever so that for the brand And if you're talking about the company, meaning a Taipei beer and the other payer, I think we also see the lower gap as well between the company. And in the last one, you asked about the new payers coming in October, November last year. So I just want to say that the first point is we had a new payer so that it made expansion for the total beer business in Thailand. so that uh so that that that is the the the core of the market and in the second one if you ask what is the status i just would like you to observe the the the chill share in the big hyper market in december for the newcomer for the new newcomer yeah okay think a point for the ac news and uh they already picked the market chat in the december about one one point one point five percent market share and right now they slightly i mean go down to about one percent for the reason with reading oh that's very helpful thank you

um on the third questions on the balance sheet um yes we reported slightly higher total debt total interest bank debt there's some timing differences as well one is that we actually have a high inventory closing the sixth month due to coming in for the selling season so that that number look looking close about 5 billion baht and we also have some slight negative carry coming for that month of March because we have a bond deal in April so we carry a bit of of cash and debt coming into to that quarter so that's kind of resolving it in by to after April debt repayment okay as for the policy we do have a policy to continue to reduce our debt as per our cash flow allow now that's continue to be the case and we do manage our our debt very carefully and reduce our repayment risk and manage to extend the mature maturity of debt and including looking at our fixed and floating interest rate all the time so that's something that we pay great attention to right okay thank you very much thank you and one moment please for our next question

And our next question comes from the line of Tan Kwan from Goldman Sachs. Please go ahead. Your line is now open for your question.

Hi. Good afternoon. Sorry, good evening. Can you talk a bit more about the competitive landscape within Thailand beer, especially given that you have gained market share? What are the competitors doing and any plans to increase SG&A?

I think the situation in Thailand, beer business in Thailand, competition is still fierce. And then I think in terms of performance, I think we did well. The share is growing. And then the newcomer didn't make any dent because overall market share, I mean, recently is only 1.2%. they they their objective is to get 10 but it's so far away from the objective in terms of sgna we hope to be able to maintain until center sales at this level because it's quite high already okay that's a we hope that the actually the newcomer they didn't spend that much of money because they have a bit of a problem on distribution in terms of distribution level they are only up to about 35 max why our and then our main competitors is up to the 95 to 100 so they are not spending money of course at the moment they're doing some price cut That's mainly because the beer is now dated. I mean the age of the beer is roughly more than about four or five months. So they need to do something to get rid of the beer rather than pack it back. But no one, I think us and our big competitors did not follow the price war or anything. So we don't expect to have that kind of price war in the next two or three quarters. Okay. Thank you.

Got it. Thank you. That's very clear. Second question is still on PR, but longer term, and both on Thailand and Vietnam, right? How do you think the demand is for international premium brand? And do you actually think Tybev will benefit with the international premium brand within the portfolio through potential collaborations?

Hi, Shawn. This is Lester here. Talking about Vietnam, I think in the long term, the beer picture for the country looks very good. Obviously, there are three big things that bode well for the market. First of all, obviously, it's a very young market, so the young demographic usually points to a better future for beer volumes. Secondly, the market is booming economically, so that will help with income. And then thirdly, obviously, is the very strong beer culture in the country. I think of the entire alcoholic market, beer takes up more than 90% of the total alcoholic market. So when you put these three things together, long term wise, the beer future looks very bright. And obviously, if you're looking at an international premium having a role in this growth in this market, Yes, it will be there, especially when you see the economy picking up or the economy growing. And that's where I think we will work at it in many different ways. We are always expanding our portfolio, moving up the price ladder, the margin ladder to take advantage of that internally. And if there's any partnerships in the future, I think I talked about this at the Sebekul call last week, that it will be done at a group level, it won't be done at a country level, and this will be decided by beer cook regionally.

Yes, and I just want to give a colour on the Thai beer market. At this stage of economy, I think the growing market, the growing beer sector is economy. our friend premium beer have a lot of problems right now our chunk cold brew is out sale one of the international sort of beer already the premium beer so i believe that currently our portfolio is enough to really sustain fight the market for the next year or two thank you thank you that's all for me

Thank you. And once again, as a reminder, if you would like to ask a question, it's star 11 on your telephone keypad to register. Once again, that is star 11 on your telephone keypad if you would like to register for any questions. And one moment for our next question, please. And our next question comes from the line of Paul Chee from Philips Securities. Please go ahead. Your line is now open.

Thanks so much for the presentation. Just three questions for me. They're all on spirits anyway. The first one is on spirits. On your slide, you mentioned price. There's a price adjustment. Could you maybe elaborate on how much of the price increase or adjustment? The second thing is not... You mentioned earlier that demand is going to be a bit hinged on the government or there's a fiscal boost. Are you confident in that? And if you are, do you have to prepare for any boost in demand? I guess it's a speculative question. My last question is just for spirits where you already have a dominant market share, is there

from the current 10 to 11 percent thanks so much for taking a question um hi um so on on price increase let me elaborate it price increase takes place um uh actually across all our products um in in thailand for this period we have a very small price increase on um browse bridge small bottles which is representing maybe about one third to 40% of our browse rate business. Because we haven't increased the price for the browse rate small bottle for four to five years. It's been at this price for a long time. We have price increase also in Myanmar, like I mentioned earlier, that because of cost food, we continue to have to adjust our price upward. And internationally, our branded malt whiskeys also have some price structure to be increased as well. That's just to explain. coming to boosting demand or any preparations I think the certainty of when the government the time the government will boost economy is actually not clear it's probably they kept saying end of the end of the calendar year this year so I think we're expecting that so if it come we would there be any preparation actually not much because as long as you put money in the hand of consumer it will do actually increase the disposable income and allow the consumers to spend so I think that that's something that we don't think there will be any changes in terms of the way we work um in thailand room for scna actually our scna is a very tight um in thailand already so i think any more room the answer is probably not not a lot i mean we continue to improve efficiency so that reducing slowly but but we will continue to have project and improve efficiency year on year but i don't think any significant change to our structure of scna would happen for the domestic thailand

Thanks so much. Just one quick follow-up. The price increase that you made on the Brown Spirit Spawn Bottle, did you see any impact on the volumes? And also, can you maybe share when did it occur? And I guess, so that we know that this thing can, I guess, slow the coming quarters if possible.

Well, I think brown spread in general have taken a bit of a decline, a small decline like mentioned. So it's not having to do with the price increase per se. The price increase needs to be dealt with because I think no consumer product can just stay on the same price forever. So I think we didn't increase the price of our products. a small bottle browse grid for like i mentioned four to five years so it's been quite a long time so we just push to the price increase that's all okay yeah great thanks so much

Thank you. And once again, if you would like to ask an audio question, please press star 1 1 on your telephone keypad to register for a question. That was star 1 1 on your telephone keypad if you would like to ask a question. And our next question comes from the line of Permada Damono from UBS. Please go ahead. Your line is open.

Hi, management. Thanks again for the opportunity. I'm not sure who to direct this question to. Probably if she's around. But, you know, in February, of course, Divyani International Limited, which is an Indian firm and largest franchisee for young brands in India, entered into into Thailand and and to become one of the three KFC franchisees there. Since their entrance, have you seen any, you know, any major changes to the competitive intensity of KFC? And tied to that, what does Tybeth think about Yum! Brand's motive of having three franchisees in Thailand? Why do they do that? Because that's not typical of their brand. modus operandi in other markets.

Hi, thank you. This is Tiff. Yeah. On the RD, I think the deal, they announced that the Indian will take care, but I think they have not yet finalized, so they are working on, okay, so So that is what I can say now. For Yam, it's actually the three franchisees is the Yam Thailand policy that they have been aligned since the beginning to balance the portfolio. So they will remain no matter what. It will be three franchisees operating in Thailand. Thank you.

And can I ask a follow-up to that? You know, how would TyBeth characterize its balance sheet capacity currently? Is it ready for, you know, sizable acquisitions again or not really? Because most recent acquisitions like the Kadrona out of New Zealand and so forth are quite small. How would you characterize your balance sheet strength today and capacity for M&A, potential M&A as an acquirer?

I think you can see that in the past 6 months or 12 months we have done those small M&A and the small acquisition take place because it fit well within our parameters of what we want to do to invest over the long term. Any significant major acquisitions will probably need to be viewed seriously. Well, there is that capacity, but we just don't want to spend on things that are not strategy. But there are opportunities like that doesn't come along that easily. So we do from time to time continue to evaluate our potential acquisitions. Yeah. So I think that the answer is a small one actually took place and the bigger one, we actually, it's only if it align well and fit well with our strategy.

Thank you. And third question is in relation to TyBev's agreement or franchise license with Yum, does it allow or does that agreement allow TyBev or restaurant the entity is QSR Asia, does it allow QSR Asia to operate KFCs outside of Thailand.

Currently, the is only Thailand right now. Thank you.

Thank you so much for the clarification.

Thank you. Those are all my questions. Thanks again.

Thank you. And one moment, please, whilst we take our next question. Our next question comes from the line of Andy Sim from DBS. Please go ahead. Your line is open.

Hello. Hi, thank you for taking my question. I have two questions. Sorry, I joined a bit late, so this will be asked. The first question is actually with respect to bare raw materials. In the slide, you mentioned the benefit of lower raw materials. Can we expect this to continue going forward and actually further decline? and put this against also Vietnam is actually I think last just a little bit on the South Africa side I mentioned that this will only see lower long materials will be only be seen actually maybe in FY25 does it apply to Thailand as well or how does it how do we see the two This is actually my first question. My second question is with respect also to beer. Maybe on a side question, it's actually in this current weather condition, are you seeing actually higher consumption in terms of beer, especially in Thailand? And already seen actually in second quarter or, you know, there's actually a further increase boost actually in the month post second quarter. Thank you.

Talking about the malt, beer malt, I think you did ask a very big question. Actually now the market price is €730 a tonne. But we are so lucky in the way that we have log, you know, for the full year and until the first quarter of next year at 500 something only. We are so lucky in the way so that we have locked for long term. But you asked for the future. Now you may not know that all the monsters in the world are gathered in Bangkok to have a symposium. I did welcome them and I did talk to them. They are very pessimistic about the war in Europe. They are very, very pessimistic about the trade costs that are going to rise. And they are very pessimistic about Ukraine. That is the ballet belly of the world. So I cannot, I have no crystal ball. But I can tell you that we will, Every day before I take breakfast, I look into this commodity because it's so niche. We have to take care of it, Andy. And we have been always lucky. That's why, you know, Khun Songwit already presented that why we keep our cost of goods so down. I think I answered your question.

Right, yeah. Thank you. So just to confirm, I think you're saying that the raw materials are actually hatched

I have one thing to go further to you that please, you may know that now China is having was overproduced or overcapacity or whatever. So this is the thing that also help the beer business about to push the aluminum can down. And, you know, we can use the Alu can from China, you know, I mean, to what we call if anything happens, China has more than enough Alucan to cover the Earth, you know, for Thailand or for Vietnam. Don't worry. I think the Alucan cost will be okay because China is doing a great job.

thank you thanks uh andy hi lester here just to talk a little bit about uh vietnam and our raw materials uh i i think i i think you also know that we are hedged on a different pricing than thailand uh so we are hedged till till the later part of this year so all the lower prices we enjoy probably next financial year before it we we enjoy the lower prices but something to talk about is that we are working closer together with Tybev to talk about group purchasing and this is where the 2025 numbers it's because of this group procurement synergies that we're starting to enjoy so if you talk about moving forward this partnership or this collaboration together with Tybev I think we'll see positive results in the years moving forward

Okay, got it. Thanks, Lester. Sorry, just to follow up on the second question in terms of the higher consumption or whether any impact.

Yes, that's Songit from Thailand. Yes, the high temperature data give the very positive impact to the overall beer consumption in Thailand.

Is this already seen in April or this, sorry, in second quarter or?

We already observed.

We expect more to come.

Yes, we already observed starting from the second quarter and continue the momentum in the third quarter.

Thank you very much.

Thank you, and one moment please for our next question. And our next question comes from the line of Sylviana Arupin from HSBC. Your line is now open. Please go ahead.

Sure. Thank you. Thank you very much, management, for the presentation. I wanted to, I guess, understand your thought process around whether you see opportunities for price raising in beer in Thailand specifically. I mean, there are, I guess, a confluence of factor here, right? Because factor... Factors like weather appears to be in your favor, but I guess competition will probably try to keep you guys on your toes. I wanted to understand how do you guys think about it? How do you see the opportunities for price raising going ahead in the next, I guess, six months to 12 months? Thank you.

Okay. Hi. I think for Thailand, if I just check the historical, in the last two years, we already increased the price three times. And with this situation, meaning the lower of the COGS, we don't have any plan to increase the price for the near future.

Got it. Thank you.

Thank you. And one moment for our next question, please. Our next question comes from from UBS. Please go ahead. Your line is open.

Sorry, it's me again. I keep coming back. In developed markets, you know, we're seeing trends of millennials and millennials or Gen Z drinking. less alcohol than the older generations. Has Thai Bev done any studies in Thailand and or Vietnam if this is happening in Thailand and Vietnam? And if it's not happening, then great for Thai Bev's business, right? But if this trend does go to Thailand at some point, do you have any product development strategy to mitigate against such trends?

I think generally the trend of drinking less alcohol is actually it is a global trend and in the western market you see more of a big european market a big european company start to have a well first big companies start to call segment like Nolo right um but um for us actually when you look at typef we actually have full range of alcohol from from beer which is to us is considered low alcohol because we do actually sell spirit at 40 degrees as well so actually from the alcohol where we actually see as a in our core market covering all funds um um beer can go you know low alcohol beer do exist in the market but we have not actually if you talk about people drinking less alcohol less alcohol but we actually haven't seen a growth in low alcohol beers in both thailand and vietnam in any significant way so showing the trend that people actually do um do that a mainstream beer as 5% probably be that where the consumer in these parts of the world would drink. So would there be drinking less spirit and into beer? That could be, that's depend on the trend going into the future. So I think from the spirit side, we also do have in pipeline, the NPD that selling spirit that are in a lower alcohol front. So I think that's something it continued to develop over time, To answer, it's that the speed of that trend in our main core market is actually much slower than the Western market.

Many thanks for those insights. Really, really helpful. But you haven't mentioned anything about the non-alcoholic beverage side in terms of product development. Anything there that is, you know... Meaningful, you know, are you going to try to boost basically things like Est or Samsung's products?

I think we are aware of the health conscious here. And then, for example, at Oishi, we continue to launch 0% sugars and all that. Yeah, we do have NPD in the pipeline. And we observe the trend closely. And then to make sure that we're not really sort of miss the trend. Yes, we do have NPD in the pocket. Yes.

That's great. Thank you. Thank you again for the clarification.

Thank you. And as a final reminder, if you do have any remaining questions, it's star 11 on your telephone keypad. And as we have no more questions registered, we are now closing our presentation and we'll begin the closing comments. I now hand back to our speakers.

Thank you for joining our conference call tonight and Please feel free to contact IR department if you have any further questions at ir.tibeth.com. Thank you and have a good night.