ThaiBev reports rising EBITDA despite revenue decline

Thai Beverage (ThaiBev) reported a 7.2% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the nine months ending June 30, reaching 48.3 billion baht (approximately US$1.46 billion).

Despite the rise in operating earnings, total revenue declined by 1.8% to 254 billion baht. The company attributed the revenue drop to unfavorable foreign exchange translation effects and a slowdown in the Thai market. Specifically, the beer segment saw a 5.3% revenue decrease, while non-alcoholic beverages fell by 3%.

In contrast, the spirits segment, which is the company's largest profit contributor, saw revenue rise 1.7% to 94.4 billion baht, supported by international business performance. The food business also grew by 3% to 17.1 billion baht, aided by the performance of its quick-service restaurant division.

The company noted that the broader economic environment in Thailand has faced challenges, including softened private consumption and a slowdown in tourism activity.