CBG Records 10% Increase in 2Q21 Earnings as Overseas Sales Continue to Expand

Carabao Group Public Company Limited (CBG) announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

CBG reported a net profit of 966 million baht in 2Q21, increased 9.68% from a net profit of 881 million baht in 2Q20. The main factor of the increase in profit came from the increase in overseas sales, which rose to 50% of total sales.

 

Total revenue from sales in 2Q21 were 4,995 million baht, an increase of 10.8% from 2Q20 due to higher sales of every product group.

 

The domestic sales of branded products by own manufacture in 2Q21 were 1,417 million baht, a decrease of 5.1% from 2Q20 due to sales of Carabao Dang energy drink decreased by 2.3% and sales of Woody C+ Lock decreased by 33.9% from 2Q20. However, both beverages recovered well from 1Q21.

 

Overseas sales of energy drinks were 2,522 million baht, an increase of 13.6% from 2Q20. The main overseas sales came from CLMV countries, accounting for 39% of total sales, China accounts for 10% of total sales and 2% from other countries.

 

Export sales to CLMV countries, an existing and large international business base for the company yet growth potential lying in each individual country, increased by 7.9% from 2Q20 due to the low base in 1Q21 from the unrest in Myanmar since February and a lockdown in main cities of Cambodia owing an outbreak of COVID-19 causing orders to bounce in 2Q21. While sales to Vietnam have continued increasing because Carabao brand is more established in the country.

 

China is another market with great potential for growth as it is the world’s number 1 highest population, and it is the first country who can control the COVID-19 outbreak. The company had a 210% increase in sales from export to China from 2Q20 because Carabao brand is more established in the country.

 

However, the situation of COVID-19 has worsened in many countries including Thailand because of the outbreak of the new species since late June which may affect the economic recovery in each country and the company’s business operations.

 

Gross profit in 2Q21 was 1,901 million baht, increased by 3.7% from 2Q20, representing gross profit margin of 38.1%, a decrease from 40.7% in 2Q20, due mainly to the lower gross profit margin of the branded products by the company’s production, which is the core business contributing 79% of total sales.

 

In addition, the Board of Directors approved a Bt0.90 per share of dividend payment to be paid on September 10, 2021. The ex-dividend date is August 27, 2021.