Thai Beverage Pcl Ord

All participants have been placed in resident-only mode. Later we'll conduct a question and answer session and instructions will be given at that time. I will now hand over the floor to the presenters, Ms. Nemphong Anstransi, Ty Bez, Head of Investor Relations, and members of Ty Bez's senior management team. Thank you.

Good evening, ladies and gentlemen, and welcome to the Tiberius Financial Resource Conference call for the year end of September 2025. I am Namphoon Aung Sutharangsi, Head of Investor Relations. For the conference call tonight, I will begin with a summary of our full year 2025 results. Then we will open the line for Q&A session with our management team. For the summary of our results, the total sales revenue of the group for the fiscal year and the 30th of September 2025 was 33,286 million baht, a decrease of 2.1% compared to the same period last year. This was due to a decrease in sales revenue across all businesses. Net profit included associated companies, was 31,153 million baht, a decrease of 11.7% compared to the same period last year. This was due to a decrease in net profit of spirits business, non-alcoholic beverage business, food business, and other businesses, partly offset by an increase in net profit of the beer business. the board of directors has proposed a total dividend of 15 581 million baht or 0.62 baht per share representing a 61.4 percent payout ratio this includes an interim dividend of 0.0.15 baht per share that paid in june 2024 sorry in june uh 2025 and at proposed final dividend of 0.47 baht per share For the highlight of our operation, in 2025, the Swiss business recorded 1.8% year-on-year decline in sales revenue to 118,604 million baht. Thus, volume decreased by 3.2%, primarily due to the weaker domestic consumption, while the international business, including Myanmar, delivered a strong performance. Nevertheless, an increase in brand investment and marketing activities and a foreign exchange loss led to a decrease in net profit of 7% year-on-year to 19,880 million baht. The beer business recorded a decline of 2.5% year-on-year in sales revenue to 123,222 million baht in fiscal year 2025, even as total sales volume rose 3.1%. The performance was affected by continued challenges in Vietnam market, offset partly by a steady recovery in Thailand. However, with lower key raw material costs and improved production efficiencies, the business delivered an impressive 24.6% sum in net profit year-on-year to 6,503 million baht. The non-alcoholic beverage business recorded a 1.6% year-on-year decline in sales revenue to 64,774 million baht in 2025, mainly due to a softer domestic consumer sentiment as well as the appreciation of Thai baht against the Singapore dollar. Despite lower packaging costs and improved production efficiency, higher brand investment and marketing activities to engage consumers across our channels together with increase in income tax expenses following the expiration of tax incentive in thailand resulted in 13.4 percent year-on-year decrease in net profit to 5141 million baht in 2025 the food business reported sales revenue of 21 899 million baht representing a 1.7 percent decrease year on year primarily due to softening consumer sentiment which affected spending Increased labor costs and marketing expenses along with higher appreciation from the restaurant expansion contribute to a net loss of 128 million baht in the food business. In 2025, the other business comprising publishing and printing registered a decline in sales revenue of 7.4% year-on-year to 4,999 million baht. This was mainly due to the absence of one-off contributions including title sales and non-recurring license income as a result the business reported a net loss of 243 million baht please note that in fiscal year 2024 the artist business included a share of profit from the investment in fpl of 2517 million baht this contribution did not recur in 2025 and onwards Now it comes to the Q&A session, and we will now open the call to any questions on our results. Ray, please help open the line for our Q&A.

Thank you. We will now begin the question and answer session.

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Once again, ladies and gentlemen, if you'd like to ask a question, please press star 1 on the telephone keypad. And to cancel the queue, please press star 2. The first question is from Shen Tan from Goldman Sachs. Please go ahead.

Hi, good evening. The first question is on spirits. Can you give us some color on what happened to fourth quarter revenue in terms of the magnitude of decline specifically?

Yes, this is Sopon from Subway Group. Let me again hand you the picture also from the whole year. We started with not so good in first quarter as you know, and then we climbing up, we was climbing up. From the second quarter and third quarter, I think these two quarters, I think we were doing so good, matching the expected results. But then the fourth quarter that you just mentioned, actually, if you look at in Thailand, because Thailand is our major market, you look at the fourth quarter, there are several incidences that happened in Thailand as well. You look at first from actually the border conflict. I think you might already aware of this already that this happened in that area that actually in that region our sale is most of the sale are in that area. So we, our agent has had to stop from selling. So we, in this quarter, almost the whole quarter that we have to actually be, so taking the safety first, we try to actually avoid selling to that area because also no one's actually being in that area. And also those are Cambodian workers, who were working in Thailand, they left the country and went back to Cambodia. So I must say that is over 600,000 people. They were our customer before taking the white separate. So that's quite the unfortunate incident for the border conflict. And then also in the Almost to the, you know, during the first quarter, there were a flood in the north and also in the central of Thailand. Now you might heard the news about the flood in the southern, but there were flood in the north, northern and the central of Thailand during the fourth quarter as well. And then we were waiting also in the fourth quarter for the new policy from the Thai government, looking to the new government coming and then waiting to see what will be the new policies in terms of promoting. And they just launched that policy this quarter, which is the first quarter. So the first quarter will say there will be some stagnant and waiting period of what will be going on for this new government and also for the natural disaster coming and also the conflict between the two countries. That caused us that we were almost to be good after the third quarter and then unfortunately we had to drop in the fourth quarter. So that would be the impact of what's going on in the fourth quarter.

Another reason because fourth quarter last year, we sell in quite a bit because expected. to have a sale out during the new year, and it doesn't come out because during the time, the economy is not as good as we thought, so it's kind of loading too much on the fourth quarter. That's why when you compare the fourth quarter last year and this year, it's not a fair comparison. The impact of this year is also what Kunso mentioned on the Cambodia border and everything, but it's not that Great, because the other big reason is we're selling quite a bit on the fourth quarter last year. Expect a good new year, but it's not come out as we expect.

Thank you. That's helpful. If I were to take a step back and look at spirits volume, it has been declining for the past three years, though. So do you think there is structural issue going on? And if that's the case, does it make sense to actually scale back on brand investment and marketing activities?

So we still don't see any structural change in Thailand or, you know, even in our international justice. I think it's just only that in Thailand, particularly on the economy, if you look at the economy after the COVID time, a couple of years ago, and then we are off the COVID, but the economy is still not so good. The gas route, the household debt is still around. So the purchasing power of the economy is still impacting the consumption of the alcoholic beverages. So I think we still see as a typical impact from the general economy at this moment, still haven't seen the structural change, particularly in Thai market as well.

Okay, thank you. I'll go back to the queue. Thank you. Our next question is from . Please go ahead. Hi, can you hear me? Yes, we can hear you.

Can you hear me?

Yes, yes, we hear you.

Okay, so a couple of questions. Maybe if we touch on the marketing spend, right, so seems a bit elevated as a percentage of sales. So do you foresee that level of spending going forward, or is this higher level of sales is because of the lower sales, besides the percentage is a bit high? How should we see that marketing spend going forward? That's the first question. And maybe a second question would be, are you able to share some top color in terms of, you know, potential corporate action and timeline for corporate action, maybe in your beer business or non-alcoholic beverage business? Yes, maybe just two questions. Thank you.

Hello? Hello, when you talk about the marketing spend, you talk about across the group, right?

No, more for spirit segment because it's quite high as a percentage of sales. But is this more of like because sales is lower or...

Thank you for your question. On the marketing expenses and ANP, I think we are cautious about this spending. So we are trying to utilize our trading network better. That's our strength in Thailand. And we'll try to only do necessarily a promotion for our products, even though that next year we're going to launch a new product more and more. But then again, we only try to do through the trade marketing networks that we have already in place in the country. So again, we are cautious about the spending and we'll do our best to keep it as normal.

Hi, this is Dip based on the competition.

Sorry, you want to ask anything more for the spirit side?

No, no, that's not very helpful. Thank you.

Okay, then we update on the computation in the BSI.

Hi, this is Tiff. The competition in beer in Thailand, I would say that the competition in the beer market is always like that. And it's only between only the two local companies, okay? But we do not see a big or any major change in the competition in Thailand as yet.

Thank you. Okay, got it.

So maybe a follow-up in terms of how is the performance doing? Because I think there is this Japan-China tension, right? Is it diverting more tourists to Thailand? Are you seeing some improved performance in here or in the last couple of weeks?

In Thailand, our performance is quite impressive, and we continue the good momentum. Thank you. You can see that our profit also grow by double digits, so still continue the momentum.

Esther, maybe you comment on the Vietnam.

Yeah, I guess you may have said to our call a couple of weeks ago, I think local market conditions have been tough. So while we picked up market share, if you look at total volumes and total revenues are down slightly, and that's an indication of the total market, not just ourselves. But because it's an open market, so competition remains very, very fierce. And we've got all the international players that we compete against. But it's good to see that Via Saigon continues to be the number one brand in Vietnam, and we will have to keep it there at a very adequate level of spend. Back to your question about AMP, because it is a competitive market, we will have to do it more efficiently to make sure we remain number one at an adequate level of spend to meet competition.

Okay, yeah, thank you, Lester, very helpful. So, I mean, you know, given that the performance is to be improving, is it any potential that will be happening in FY26 or do you think that it will be delayed further? This is a perennial question.

I believe that we asked this question at least once. And I think the answer remains the same as before. You all know the market conditions now are not conducive to the listing of the company. So we will continue to drive performance in the company and include many other ways to get it ready so that when the market is ready, we'll be ready to go for IPO. Thank you.

Okay, got it.

I'll jump back to you. Thank you. Thank you. Thank you.

Our next question is from Meghana Kande from CGS International. Please go ahead.

Hi. Good evening. Can you hear me all right? Yes, we can hear you Meg.

Okay. Thank you so much for taking my question. So I have a couple of questions. Maybe first just following up a little bit on the spirit side. So we've launched a few new products this year already, and you just mentioned that you plan to launch a few more next year. So just wondering when do you expect to see that scale up in your volumes where you start to achieve the economies of scale given the high A&P spend that you have planned? You've already done this year and have planned for next year. So basically just wondering your expected timeline on the scale up for your new products. That's my first question. Second is regarding the non-alcoholic beverage side in Thailand. So I think we're seeing FNN do quite well with the Malaysia dairy side. But I think on Thailand, the domestic market was a little bit weak, as mentioned, because of the domestic consumer headwinds. But we're also simultaneously hearing some competitors gaining market share on the NAD side. So maybe can you just help explain your strategy a little bit in terms of pricing action, marketing, any product development for your NAD specifically in Thailand? And my third question is regarding your beer segment. So I'm kind of looking at your other markets, international markets like Myanmar and Cambodia. So can you give any color on the volume trends for your beer and spirits as well in Myanmar? How has your market share trended this year? And also, lastly, any progress update on your Cambodia brewery?

Thank you so much. Okay.

so uh uh good evening this is uh song with uh uh chief speed in thailand so regarding your creation about the in in pd so let's see that uh for the last year we launched the two uh major brands that uh the first one was the new world single ball that uh that we call prakan that are mainly we sell domestic and also export for some for some country for example in the europe and japan and then a second brand that we run to the new category we call the ready to ring or uh rtd and uh if you uh ask about the uh our expectation it will say that uh for the for the newer whiskey single mall we still need time to get the break break event but that's not a huge investment but for the ready-to-drink category we see the break even that's only within the one year after the launch so that in the last year And then for this year, Data Consultant mentioned the series of our NPD. Actually, we are cautious about our spending. So we launch the same brand, mainly, but we extend the SKU. For example, we launch the browse grid in the affordable market. uh size meaning the 200 ml and which is which are the current brands meaning the hong kong meridian and sangsom and we received the the trend that uh due to the facing of the challenging of the economy so we said the target private is more comfortable uh affordable however we still maintain our cross margin on that particular group and then second one uh we just run the new product last week that called the uh hong kong pretty tooling as well and hong kong is the the number one browser within in in thailand so we don't need to invest any more a and p to blue brand that's uh put more of the distribution especially for the uh off trade and uh and the booted channel so i think that that's all for the for the our strategy the npd

Hi, this is Sophan again. For the Myanmar market for Subway Group, I must say that last year was a very good year for us, even though we was hit by the earthquake in March. But we came out quite solid after that. The sale revenue went up more than 20%, and then the result was so good. And then the only difficulty that we are facing in the market would be in terms of logistics. that we will not be able to go into some area. Those are conflict area in the border of Myanmar. And also difficult to find a hard currency, particularly the US dollars. That's how we have to slowly try to think around how to get the US dollar for our importation. But in general, with our market share over 20%, and we strongly reintroduce quite a new products in the market as well. So I'm quite confident with this market.

Excuse me, for NAB, actually the information that you just mentioned about the market share I think is not the right information because in fact in the very high aggressive competition, we are able to secure and grow our market share in the core categories and we are the only brand that grows both in drinking water and also in CSD categories which are the two biggest categories in NAB in Thailand. we are still maintain our secure our leadership in all core categories and also grow the volume of cake and also market share thanks um

In Cambodia, all the three facilities being built, it's completed, going to be completed in the next few months within the end of the year. And I think commercial productions will probably sometime with December into January.

That's the status.

With the breweries and also the factories, we'll be able to claim that we are local productions so that will help and we will start next year in january so we will come out with the product all with all the packaging and everything can put in and made in cambodian which is now quite acceptable with people in cambodia got it uh thank you so much for that color it's very helpful

Just two small follow-up questions. So one on Myanmar, did I hear correctly that the market share was over 20%? Just want to confirm if I heard that correctly. And second, on the NAB side, thank you again for clarifying regarding the market share trend there. But I'm just wondering on your strategy for next year in terms of marketing or pricing action for next year for NABs. Thank you.

In Myanmar spirit, I think we can share. Right now, we're in the region of 72% of whiskey market. Increased from last year, 70%. So in NAB, I think we still have, I mean, for Sochi, it's still quite small business there, but it's growing. But for F&N, it's doing quite well there. But I can't, we don't have the information of market share for that market.

Hi Meg, I think the second question you asked about the marketing spend for NAB going forward, is it?

Yes, that's right. Yeah, my market share, sorry, marketing spend and also your ASP pricing, any action on there.

Actually in terms of AST, normally we do not disclose because this one we're quite careful because we also don't want our computer to know what is the plan for us. Yes, in terms of the marketing spend for AST, For NAB, as you know, it's not just spread. I think it's all across the segment that we carefully spend our marketing. We try to do it more efficiently as well as in order to make the bottom line improve in 2026. Yeah, so we all control it across category.

Thank you so much, everybody. Thank you. Thank you.

So, ladies and gentlemen, just a gentle reminder, if you'd like to ask a question, please press star 1 on the telephone keypad.

To cancel, please press star 2. Our next question is from .

Please go ahead.

Thank you very much for the opportunity to ask questions, and good evening, management. I have a question with regard to commentaries. If you could provide some comments around raw materials input costs, maybe going into 2026. What should we expect? I know there was a, I guess we have enjoyed quite favorable raw material costs, particularly in the beer industry. in this financial year, should we expect that to continue into next year? Probably if you could help us with that comment or beer, as far as there is a vision that would be helpful, as far as packaging in general. Thanks.

Rina, thanks for the questions. I think in terms of all that, it's quite favorable next year. Start with Molas. Right now, the current trading is about 30% to 35% lower than last year. They start the spreading already. In terms of malt, Dr. Pisanuk will comment later on. But on NAB, there are two big cost of good ingredients, which is packaging. We bought a resin, which is a main for the packaging, at about 60% price of last year, which means that we will have a very favorable cost in terms of ration. And this year, in Thailand, the sugar is very good. That's why quite a lot of sugar produced, so we expect the sugar price to come down. So all these three categories, we believe to have a very favorable sort of cost of goods.

hey that's that that's what that's the overall in terms of more doctor please i think uh i can give you in the short answer the the price of the mouth declined heavily last year and for next year the price of the ball still declining another two digits so you can be rest assured that the cost of crystal gonna be good and uh the other part of the raw material is about the broken rice. The price come down more than 20%, another 20% further down from last year. So, Khun Wai Chai kindly explain it to you. The rest, you know, aluminum, cotton, corrugated paper, labels, you know, are coming down in price. And I think the cost of Kuso gonna be good for next year.

I mean, overall, for the future, the market is very challenged for us, but we are lucky to have a very favorable cost of good, so we should be able to really sort of protect our profitability this coming year.

Thank you very much for the explanation. Thank you. Our next question is from . Please go ahead. Yeah, hi. Can you hear me? Yes, we hear you. Yeah, hi.

Thank you for the opportunity and good evening, everyone. Just a couple of questions. First is that maybe if you can help me with your expectations for board level expectations on the growth side and margins outlook for various businesses in FY26. And the second question is also at the macro level, you know, How do you see the impact of Thai and regional macroenvironment on the demand outlook? And what steps are being taken to mitigate the overall consumer softness?

uh uh uh can uh can i recap your question uh uh the first one you asked about the the growth outlook and the margin improvement in 2026 is it is it the right quick is it right Yeah, that's correct. Yep. For that first question, I think we cannot give you in terms of the forward-looking in terms of the growth as well as the margin for next year. Normally, we don't give the forward-looking. Sorry about that. For the second question, you asked about demand and consumer sentiment in the region as well as Thailand.

Is it the question that you asked? Yeah, that's right, yeah. That's correct.

Well, this coming year, the sentiment, okay, we have to, for Thailand, the government is trying so hard to really sort of promote the economy. You probably heard about the half-half. It's worked very well for our products, all categories. And then we heard the government that they will have a phase two in January. That's also plus for us. It's probably positive for the consumer sentiment. They also try to promote local tourism. by offer 50 of the cost you can claim and all that all that are positive because the government is trying hard to really really push the economy for next year for this so we believe that we will gain attraction from those also and next year in thailand as i mentioned before there will be elections in the past history every every every time we have election the consumption of beverage alcohol is increasing during the erections that also another plus for for our alcoholic beverage in thailand so in conclusion in thailand we believe that it will be a bit favorable better than the current or last year yes thank you very much

Thank you. Our next question is from Shenton from Goat Mensax.

Please go ahead.

Hi. Can I check on net gearing? Could you explain why the net gearing increased year on year? What is the CAPEX plans and whether there's room to raise dividend payout ratio?

Hi, Kisda speaking. I think for the debt gearing increasing, actually, if you look at the interest rating that it sells, actually, as an absolute amount, we are lower. However, when we look at the gearing or some of the debt to EBITDA, because of this year, some of the impact on EBITDA, so that's why the... the ratio looks to be high. Regarding to the capex, as we already informed during the event last month on the press conference, the majority of the investment in Malaysia and Cambodia is almost spending in terms of the operating. So we not expect the same level that will happen in 2026. So that's why I think we think it will be going back to the normal level probably mid of next year.

And how about dividend payout ratio? Any room to increase?

Hi, this is Prabhakar. I think we'll maintain that our dividend will be at least half of the profit we made. We maintain that and subject to our cash flow availability. I think we maintain our dividend per share this year and although despite our earning a bit softened.

So in a way the payout have been increased slightly. Second question, can I clarify on NAB business?

First is why is minority interest so high relative to the reported net profit? And second, dairy's volumes seem to have been restated. Is that the case and what was the reason behind this?

Maybe I... Yeah, I think if you saw the interest expense in the NAV segment, because you know that actually we have the capex investment actually on the cow farm in F&N, then we fully consolidation of F&N, the whole group into the Thai beef consolidation. So part of the interest expense during the capex investment in Malaysia also include in the Taipei this year fully. So that's why when we see the year-on-year, the ramp up of the capex and the interest in Malaysia will happen year-on-year increase this year.

Can I get the questions again on your dairy? Are you asking about the volume of dairy?

Yes. The first half, I think dairy's volume was about 300 over. And then full year, we're still at 300 over. So I assume that was the restatement of what changed for dairy's volume.

Sorry, I can start again. So I think actually when the first half is when we look at the details as we release the half-year review, right, we probably will not like go into a deep dive in terms of how we categorize their dairy or non-dairy. So then when we audit the full years, we try to reach a full in the more comparable. The dairy right now, we focus on the key brand that like a carnation, teapot, and the magnolia. So that is both justify the dairy. Some of part of that one like Nutrisoy or other some of the milk, we classify to be the soft drink. So that's why this dairy will be comparison wise to wise in terms of year on year on the key brands. diary product of the group.

Okay, sorry. So the volume, which other segment did you go to? Sorry, Sun, can you repeat your question? Sorry.

Yeah, so there was a restatement, right, in terms of where the certain volumes are categorized? Correct, correct, correct.

It's recategorized. Okay, okay, got it.

Thank you. Lastly, just a comment. I guess we have seen companies listed in both Thailand and Singapore giving forward-looking statements, so it will be really helpful if you can reconsider Thank you.

Okay. Thank you. Thank you for your. Thank you.

Ladies and gentlemen, just a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad.

To cancel, please press star 2.

As there are no further questions, we will now begin the closing comments. Please go ahead, Ms. .

Thank you, everyone, for joining our conference call tonight. And if you have any more questions, please contact IR at ir.typef.com. Thank you, and have a good night.