Thai Beverage Public Company Limited

Good evening, everyone, and thank you for joining the Thai Beverage FY 2021 results call. All participants have been placed in a listen-only mode. Later, we will conduct a question-and-answer session. An instruction will be given at the time. I will now hand over the call to the presenter, Ms. Namphong Amsu Tonglongsi, ThaiBREF Head of Investor Relations and the members of ThaiBREF Senior Management Team. Thank you.

Good evening, ladies and gentlemen. Welcome to ThaiBerets 2021, ended the 30th of September, 2021 Financial Results Conference Call. I am Namphut Aung Sutharangsi, Head of Investor Relations. For the conference call tonight, I will start with a summary of the 2021 results. Then we will open the live for Q&A with our management team here. For the summary of our results, total sales revenue of the company for the year ended the 30th of September 2021 was 240,543 million baht, a decline of 5.1% when compared to last year. This was due to the impact from the COVID-19 situation, which was more severe than last year. Net profit was 27,339 million baht, an increase of 4.9% year-on-year. This was due to positive change impact from last year non-recurring costs and deferred tax utilization related to beer business restructuring of 2,660 million baht. The Board of Directors has proposed to issue a dividend of 12,559 million baht or 0.5 baht per share, which is higher than 0.46 baht per share of last year. The payout ratio for the fiscal year 2021 dividend is 51% payout ratio. Please note that the interim dividend was paid in June 2021 at 0.15 baht per share and the final dividend will be 0.35 baht per share. For the highlights of this year, the company's spirit business remained resilient in the 2021. Despite the closures of entertainment venues and restaurants, as spirits are mostly consumed via off-trade channels, the business generated sales revenue amounting to $1,000. 115,052 million baht or 1.9% decrease year on year. Taking into account 1.8% decline in total sales volume. The Spritz business delivers stable net profit of 22,138 million baht along with an improvement in the net profit margin. The company's beer business recorded sales revenue abounding to 99,157 million baht In 2021, a 7.2% decrease compared to the previous year in view of lower beer sales volume due to the strict COVID-19 control measures in Thailand and also in Vietnam. Total sales volume decreased 11.1% year-on-year when including tobacco sales. and decreased 4.4% year-on-year when excluding the cervical sales. The net profit of the company's beer business declined 11.4% year-on-year to 3,119 million baht. However, beer business in Thailand reported an increase in net profit from cost-saving initiatives. The company's non-alcoholic beverages business generated sales revenue amounting to 15,205 million baht in 2021, a decrease of 6.6% year-on-year due to a 7.6% decline in total sales volume. The net profit from normal operation rose 51% to 548 million baht year-on-year as a result of cautious cost management by reducing advertising and promotion expenses as well as controlling administrative expenses and excluding the margin of insurance claim on property damage from five incidents of Oishi Beverage Factory recorded in the previous year. The company's food business recorded sales revenue of 11,280 million baht in 2021, a 14.4% decrease year-on-year, mainly due to impact from the government imposed containment measures to contain the virus spread, including restaurant closures in the shopping malls and the prohibition of the dine-in services. The business undertook active mitigation measures such as enhancing home delivery and takeaway options and by managing costs prudently. Nevertheless, the decrease in sales revenue led to a net loss of 488 million baht for the food business. The company's international business recorded sales revenue of 57,394 million baht in 2021, an 8% decrease year-on-year. The decrease was mainly due to an 11% decline in beer sales following the lockdown and strict social distancing measures in Vietnam. This was partially mitigated by a 5% increase in revenue generated by the international spirit sales due to the growth in contribution from Scotch whisky and also Chinese spirits. Now we will open for 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. Participant with a question to pose, please press 01 on your telephone keypad, and we will place it in the queue. To cancel the queue, please press 02. Once again, 01 on your telephone keypad. First, we have a TT Tech. Please go ahead.