Thai Beverage Public Company Limited

Good evening, everyone, and thank you for joining the Thai Beverage First Half 2022 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. Namphon Ongsuthorn Rungsi, Thai BEV's Head of Investor Relations, and the members of Thai BEV's Senior Management Team. Please go ahead.

Good evening, ladies and gentlemen. Welcome to Thai Beverage, the first half 2022. Ended the 31st of March 2022 financial results conference call. I am Namphoon Aung Suthon Rangsi, Head of Investor Relations. For the conference call tonight, I will start with a summary of the first half 2022 results. Then we will open the line for Q&A session with our management team. For the summary of the first half financial results, total sales revenue of the company for the six months ended the 31st of March 2022 was 142,942 million baht, an increase of 8.9% when compared to last year. This was due to an increase in sales revenue of all business segments. Net profit was 18,365 million baht, increased 14.2% compared to last year. This was due to an increase in net profit of beer, non-alcoholic beverage business, food business, and associated companies, which is partly offset by a slight decrease in net profit of spirit business. HBEP's Board of Directors agreed to propose an interim dividend payment of 3,768 million baht or 0.15 baht per share, the same as last year. The company remains committed with our full-year dividend policy of not less than 50% of net profit after deducting of our specified reserve subject to our investment plans and as the Board of Directors deemed appropriate. In the first half 2022, the company's business generated sales revenue of 65,186 million baht, a 2.1% increase compared to last year. Sales volume increased 6.4% year-on-year. The business reported net profit of 12,816 million baht, a slight decrease of 0.4% year-on-year due to an increase in cost of goods sold. The company's BI Business recorded sales revenue amounting to 61,939 million baht in the first half, a 14.7% increase compared to the previous year. Thanks to the measures to contain COVID-19 have been relaxed, total sales volume increased 5.5% year-on-year when including sub-eco sales and increased 2.8% year-on-year when excluding sub-eco sales. The company's net profit for the beer business shows a satisfactory increase by 62.2% year-on-year to 1,377 million baht. The company's non-alcoholic beverage business generated sales revenue of 8,204 million baht, an 8.1% increase year-on-year. Total sales volume rose 7.5% year-on-year, mainly due to the increase in sales volume for drinking water, ready-to-drink tea, partially offset by a decrease in carbonated soft drink sales volume. Net profit for the non-alcoholic beverage business rose 31.5% to 438 million baht. The company's food business recorded sales revenue of 7,688 million baht in the first half, a 30.6% increase year-on-year, following the resumption of die-in services. Net profit increased significantly by 261.5% year-on-year to 272 million baht. This was mainly due to an increase in sales as well as managing distribution costs and administrative expenses prudently. The company's international business recorded sales revenue of 36,867 million baht in the first half 2022, a 24% increase year-on-year. The increase was mainly due to a 29% increase in beer sales as a result of the relaxation of COVID-19 restrictions in Vietnam and the growth from Chang Soda sales in China. The International Spirits Business reported sales revenue growth of 3% driven by Myanmar market. That is the summary of the first half 2022 results. Before we start the Q&A section, I would like to note that for regulatory reasons, management will not answering any question respect of the proposed spin-off of BR Co Ltd. Instead, please refer to ThaiWeb's announcement on the 5th of May 2022. The announcement included certain information about the BRCO group that allow ThaiWeb shareholders to better understand the scope of the proposed spin-off and the listing of BRCOs. Certain information about the BRCO group is also included in today's presentation materials for purposes of updating the information previously provided about the BRCO. However, in this conference call, management will only speak about the Thai Beff beer segment, which is different from the beer cold group. Management may not respond to questions relating to the beer cold group for regulatory reasons. We will now open the call to any questions on our results. Operator, please help open the line for Q&A.

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 the queue, please press 02. We have got the first question from Sylviana Aripin, HSBC. Please go ahead.