May 14 - From the first quarter 2008 onwards, the reporting of business segments has been rearranged to add a new segment called “non-alcoholic beverages”, which consists of energy drinks, ready-to-drink coffee, soda water and drinking water. The Company has expanded its non-alcoholic beverage business by acquiring the assets of a Thai Company engaged in the production and sales of energy drinks and ready-to-drink coffee and which has commenced this business in the first quarter 2008. The soda water and drinking water business will now be presented in the non-alcoholic beverages segment instead of the beer business. Accordingly, the business segments will consist of Beer, Spirits, Non-alcoholic Beverages and Industrial Alcohol. Due to the low turnover of soda water and drinking water in the previous periods, the business segment information for 2007 will not be restated to compare with 2008.
From 15 January 2008 onwards, all alcoholic drinks have been charged an additional 1.5% of excise tax by law to subsidize the Thai Public Broadcasting Service. Currently, the Company has paid excise tax, municipal tax that is 10% of excise tax, Health Promotion Fund contribution that is 2% of excise tax and the latest one, TPBS tax that is 1.5% of excise tax. The Company has already increased the sales price of its products to cover the higher costs arising from the TPBS tax charge.
Since 1 January 2008, the Company has changed its accounting policy regarding goodwill to comply with Thai Accounting Standard (TAS) 43 (revised 2007) “Business Combination” which is effective for accounting periods beginning on or after 1 January 2008. In the previous periods, goodwill arising from a business combination (such as an acquisition) was accounted for as “cost less accumulated amortization over the estimated useful life” of the goodwill. Currently, goodwill will be measured as “cost less any accumulated loss after doing an impairment test.” There is no impairment loss in the carrying value of goodwill as at 31 March 2008. The financial statements for the year 2007 have not been affected by this change in accounting policy.
Group
For quarter one, ended 31 March 2008, total sales revenue of the Company was Baht 26,740 million, an increase of 3.0% or Baht 779 million, from Baht 25,961 million in the corresponding quarter of last year, mainly due to higher sales revenue from the spirits business of about 6.3%.
Gross profit was Baht 7,432 million, a decrease of Baht 219 million, or 2.9%, mainly due to a decrease in sales revenue and a lower gross margin from the beer business.
Earnings before interest, tax, depreciation and amortization (EBITDA) was Baht 5,226 million, a decrease of Baht 644 million, or 11.0%, mainly due to a decrease in the beer business sales and gross profit and an increase in marketing expenses.
Net profit was Baht 2,631 million, down by Baht 247 million, or 8.6%, mainly due to a decrease in the beer business sales and gross profit and the increase in marketing expenses, although interest expense decreased.
