“Beerco” sells mainly in Thailand, under its flagship brand “Chang”. It is also active in Vietnam, via the “Saigon” brand.
For this IPO, Thai Bev plans to sell around 20% of “Beerco”, whose chairman is renowned former F&N CEO Koh Poh Tiong. The company’s CEO is Michael Chye Hin Fah.
According to ThaiBev, the spin off will create the largest beer “platform” in Asean, with a volume market share of 23.4% for FY2020. Heineken was second place with share of 22%.
ThaiBev wants “Beerco” to have a sharper focus on growing the beer business with an “enhanced” corporate structure.
ThaiBev, besides selling beer, produces other alcoholic products such as whiskey, as well as non-alcoholic drinks and foodstuff too.
In the same period, ThaiBev reported a 5.1% drop in revenue to 71.8 billion Thai baht. Thanks to better cost control, the company’s earnings for the same period was held steady at 8.5 billion baht, up 0.5%.
Beerco owns three breweries in Thailand with a total capacity of 15.5 million hectolitres, with a utilisation rate of 51% utilization rate and a planned capex of $26.6 million in FY2021 and $11 million come FY2022. In Vietnam, Beerco owns or controlls the breweries. In FY2020, utilisation rate was 80%.
The company closed at 81 cents, down 2.42% on Feb 10.
See: ThaiBev reports 1% higher earnings of $375.2 mil in 1Q21 due to higher sales in spirits, beer and non-alcoholic beverages
