In Q2/2017, Sermsuk (SSC) achieved the highest revenue of 8,218 million baht, while Carabao Group (CBG) saw the highest growth rate of 39.9% compared to the same period last year, with revenues rising to 6,279 million baht (Q2/2017) from 4,486 million baht (Q2/2016). In terms of profit, Tipco Foods (TIPCO) reported the highest earnings per share at 1.18 baht per share and a net profit margin of 19.1%. Malee Group (MALEE) had the highest return on equity (ROE) at 30.56%, while Sappe (SAPPE) reported the highest return on assets (ROA) at 20.02%. The capital structure is in good condition, with all ratios not exceeding 2 times.

TerraBKK Research summarizes the performance figures for Q2 2017 of the “Beverage” sector, comprising 7 companies, as follows:


Revenue


• The average revenue for Q2 2017 ranged from 2,800 to 4,600 million baht.
• The highest revenue in the group was from Sermsuk (SSC) at 8,218 million baht.
• The highest growth in revenue compared to the same period last year was from Carabao Group (CBG) at 6,279 million baht (Q2/2017) from 4,486 million baht (Q2/2016).
• The largest decline in revenue compared to the same period last year was from Malee Group (MALEE) at 2,931 million baht (Q2/2017) from 3,317 million baht (Q2/2016) due to a slowdown in the CMG business and decreased international sales.


Earnings per Share (EPS)


• The highest EPS was reported by Tipco Foods (TIPCO) at 1.18 baht per share (Q2/2017) down from 1.25 baht per share (Q2/2016).


Net Profit Margin (NPM)


• The average net profit margin for Q2 2017 ranged from 5.3% to 12.9%.
• The highest net profit margin was from Tipco Foods (TIPCO) at 19.1%.
• The largest decline in net profit margin compared to the same period last year was from Sermsuk (SSC) at -3.21% (Q2/2017) from -1.05% (Q2/2016), partly due to the discontinuation of Gatorade sales and increased transportation costs following rising oil prices.

Return on Equity (ROE)


• The average ROE for Q2 2017 ranged from 5.5% to 20.5%.
• The highest ROE was from Malee Group (MALEE) at 30.56%, reflecting effective management in delivering returns to shareholders.
• The highest growth in ROE compared to the same period last year was from Sappe (SAPPE) at 20.83% (Q2/2017) from 18.51% (Q2/2016).
• The largest decline in ROE compared to the same period last year was from Tipco Foods (TIPCO) at 18.57% (Q2/2017) from 31.82% (Q2/2016).


Return on Assets (ROA)


• The average ROA for Q2 2017 ranged from 3.65% to 15.5%.
• The highest ROA was from Sappe (SAPPE) at 20.02%, reflecting the company's efficiency in utilizing assets for returns.
• The largest decline in ROA compared to the same period last year was from Ichitan Group (ICHI) at 1.37% (Q2/2017) from 7.33% (Q2/2016) due to stagnation in the ready-to-drink tea market and increased cost of sales from price competition.


Debt to Equity (D/E)


• The average D/E for Q2 2017 is in good condition, all below 2 times, with the highest ratio in the beverage sector being Malee Group (MALEE) at 1.39 times, still within a low-risk capital structure. --- TerraBKK

 

 

Article by: TerraBKK Investment Tips
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