Thai Beverage Public Company Limited

Good evening, everyone, and thank you for joining the Thai Beverage FY 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. Namphong Ongsotoanungsi, Thai BEV's Head of Investor Relations, and the members of Thai BEV's Senior Management Team. Thank you. Please go ahead.

Good evening, ladies and gentlemen. Welcome to Thai Beverage Fiscal Year 2022 and the 30th of September 2022 Financial Results Conference Call. I am Namphon Aung Suthon Rangsi, Head of Investor Relations. For the conference call tonight, I will start with summary of the full year results. Then we will open the line for Q&A session with our management team here. For the summary of the full year results, total sales revenue of the company for the year ended 30th September 2022 was 272,359 million baht, an increase of 13.2% when compared to last year. This was due to an increase in sales revenue of our business segment. Net profit was 34,505 million baht, an increase of 26.2% year-on-year. This was due to an increase in net profit of beer business, non-alcoholic beverages business, food business, and associated companies, although there was a slight decrease in net profit of space business. The Board of Directors has proposed to issue a dividend of 15,072 million baht or 0.6 baht per share, which is higher than 0.5 baht per share of last year. The payout ratio for 2022 dividend is 50.1% payout ratio. Please note that the interim dividend was paid in June 2022 at 0.15 baht per share, and the final dividend will be 0.45 baht per share. In 2022, the company's split business generated sales revenue of 116,177 million baht, a 1% increase year-on-year, while total sales volume increased 0.1% year-on-year. The split business reported net profit of 21,902 million baht, a decrease of 1.1% year-on-year, due to changing in product mix and higher packaging costs. Although more license costs started to come down in the third quarter of 2022, to mitigate the impact, the company made appropriate price adjustments. The company's beer business recorded sales revenue of 122,489 million baht in 2022, a 23.5% increase compared to the previous year, in view of higher beer sales volume following the relaxation of COVID-19 control measures in Thailand and Vietnam. Total sales volume increased 14.5% year-on-year when including sub-agile sales and increased 3.7% year-on-year when excluding sub-agile sales. Net profit showed a satisfactory increase of 143.6% year-on-year to 7,597 million baht. The company's non-alcoholic beverage business generated sales revenue of 17,432 million baht, up 14.6% year-on-year. Total sales volume increased 10.9% year-on-year, mainly driven by higher demand for drinking water Carbonated soft drink and ready-to-drink tea products. Although there was an increase in materials cost, the non-alcoholic beverage business reported net profit amounting to 586 million baht, increased 27.8% year-on-year, mainly due to the improvement of production efficiency and the cost-saving initiatives. The company's food business recorded sales revenue of $16,433 million in 2022, a 45.7% increase year-on-year, following the resumption of die-in services. Net profit increased significantly by 177.1% year-on-year to 376 million baht. This was mainly due to an increase in sales as well as the prudent management of distribution costs and administrative expenses. The company's international business recorded sales revenue of 78,872 million baht in 2022, a 37% increase year-on-year. The increase was mainly due to a 46% increase in via sales revenue from Sabico, in line with Vietnam's strong reopening momentum. Sales revenue was further boosted by a 7% increase in revenue generated by the international spirit sales. on the back of higher contribution from Grand Royal Group in Myanmar, as well as from the Scotch whisky sales and the sale of Chinese fruits. That is the summary of our full year 2022 financial results. Now we will open the line for 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'll be placed in the queue. To cancel the queue, please press 02. Participants with questions to pose, please press 01 on your telephone keypad and you'll be placed in the queue. To cancel the queue, please press 02. Our first question is from Hong Han, CISA. Please go ahead.