Thai Beverage Public Company Limited

Good evening, everyone, and thank you for joining the Thai Beverage First Half 2021 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. Nan Fong Angsun Tongrongsi, Thai BEF's Head of Investor Relations and the members of Thai BEF's Senior Management Team. Thank you.

Good evening, ladies and gentlemen. Welcome to Thai Bearish. The first half 2021 ended the 31st of March 2021 Financial Resource Conference call. First of all, we would like to say sorry for the delay because we have some technical issues, but right now we can resume and we can start the call. I am now from Asutha Rangsi, Head of Investor Relations. For the call tonight, I will start with summary of the first half results, then we will open the line for Q&A session with our management team. For the summary of the first half results, total sales revenue of the company for the first six months ended the 31st of March 2021 was 131,252 million baht, a decline of 4.3% when compared to last year. This was due to a decrease in sales revenue of our business segment from the impact of the second wave of COVID-19 pandemic in Thailand. Net profit was 16,076 million baht, increased 8.7% compared to last year. This was due to an increase in net profit of Spritz and beer business. And due to last year, there was other non-recurring costs and deferred tax utilization related to beer business restructuring. Although there was a decrease in net profit of non-alcoholic beverages business and associates and a change in net profit to net loss of the food business, Tybeck's Board of Directors agreed to propose an interim dividend payment of 3,768 million baht or 0.15 baht per share. For the highlights of the first half 2021 results, The company's business was marginally affected by the second wave of the COVID-19 in Thailand. Its generated sales revenue amounting to 63,876 million baht, 0.6% decrease when compared year-on-year, and total sales volume recorded by the business declined 1.2% year-on-year. Nonetheless, net profit still amounted to 12,283 $12,866 million, an increase of 3.6% year-on-year. New to a rise in gross profit and a decline in advertising and promotional expenses. The company's business recorded sales revenue amounting to $53,978 million in the first half, or a 5.1% decrease compared to previous year. Total sales volume decreased 5.3% year-on-year when including tobacco sales and decreased 7.9% year-on-year when excluding tobacco sales. However, the company's net profit for the beer business reported a satisfactory increase of 84.2% year-on-year to 2,214 million baht. This was mainly due to the decrease in distribution costs and administrative expenses. The company's non-alcoholic beverage business generated sales revenue amounting to 7,592 million baht in the first half, down 12.6% year-on-year, due to a 14.6% decline in total sales volumes. However, excluding non-recurring items for other income recorded in the first half of 2020, the non-alcoholic beverage business recorded a significant increase in net profit from normal operations of 98.2% year-on-year due to prudent cost management. Net profit for the period was $333 million. The company's food business recorded sales revenue of of 5,885 million baht in the first half, a 19.9% decrease year-on-year. The food business was impacted by the second wave of the COVID pandemic in Thailand, which caused concern among consumers about dining out at the restaurants. Business was also impacted by the restrictions on restaurant closing times in certain areas. despised efforts to cushion the impact of COVID by enhancing home delivery and takeaway options and by managing costs prudently. The decrease in sales revenue of the food business caused the business to record a net loss of 104 million baht in the first half. The company's international business recorded sales revenue totaling 29,832 million baht in the first half, down 3% year-on-year. the revenue for international beer sales declined 4%, mainly due to the decrease in tobacco sales revenue. However, revenue generated by international spirit sales increased by 2% year-on-year due to significant growth of Scotch whisky and Chinese spirit sales. We will now open the call for our current area, our resource. Since we are all working from home right now, Tonight, we will have Khun Ui Chai will be our MC for the Q&A session. Khun Ui Chai is our Director and Senior Executive Vice President and Chief Operating Officer in Thailand. Serena, please go ahead and open the line for the call.

Thank you. We will now begin the question and answer session. Participants with questions to pose, please press 01 on your telephone keypad and you will be placed in the queue. To cancel your queue, please press 02.