THAI Beverage posted a 9 per cent drop in net profit to 27.4 billion baht (S$1.2 billion) for its full year ended Sep 30, from 30.1 billion baht in the previous corresponding period.

In a bourse filing on Wednesday (Nov 22), the beverage manufacturer said that it faced cost pressures, and spent more on brand investment and marketing during the period.

Earnings per share stood at 1.09 baht for the year, down from 1.20 baht the previous year.

Revenue for FY2023 rose 3 per cent to 279.1 billion baht, from 272.4 billion baht the year before, backed by an overall improvement in economic activity in Thailand. A final dividend of 0.45 baht per share was declared for the full year, unchanged from the year before. The dividend will be paid on Feb 28, 2024, after the books are closed on Feb 8.

By segment*, the company noted that the spirits business was resilient, with net profit rising 3 per cent to 22.1 billion baht.

The performance of the beer business was affected by unfavourable market environments, higher costs and brand investment; it reported a 38 per cent decline in net profit to 2.4 billion baht.

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Its non-alcoholic beverages business reported improved revenue in all product categories, but net profit fell 3 per cent to 390 million baht.

The company’s food business benefited from the resumption of dine-in activity. Market penetration improved with the opening of new stores, but profitability was hit by a rise in costs. Net profit for the food segment fell 82 per cent to 67 million baht.

Thailand’s alcoholic and non-alcoholic beverage industry in 2023 continued to show signs of improvement, the company said. However, a lower-than-expected number of tourist arrivals in FY2023 hampered the recovery of tourism spending to the pre-pandemic level.

Prolonged post-election uncertainty surrounding the choice of prime minister weighed on consumer confidence. And the purchasing power of low-income households remained weak because of high levels of household debt and a rising cost of living, the company said.

Shares of Thai Beverage closed flat at S$0.54 on Wednesday, before the release of the results.

* Amendment note: The article has been edited to correctly reflect the attributable profit for the business segments.