CBG Announces a 60% Increase in 2Q Earnings, Offering a Dividend Payment of ฿1

Carabao Group Public Company Limited (CBG) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

 

CBG reported a net profit for the quarter at 881 million baht, increased 59.61% from a net profit of 552 million baht in 2Q20. The increase was largely driven by the improving sales and overall gross profit margin, a reduction in sponsorship fee to CFC,and significant decrease in losses from the ICUK operations as ICUK’s spending was in effective control.

In the second quarter of 2020, total revenue from sales were THB 4,508 million, an increase of THB 754 million or 20.1% driven by higher sales of energy drinks especially for export markets and greater sales growth from distribution of third party’s products.

 

A slight drop in the domestic sales of CBG’s own product was due to the sluggish demand as major business activities were interrupted and curfew measures implemented during late March to June in Thailand to confine the Covid-19 outbreaks. However, most of the drop was compensated by sales of Woody C+Lock Lemon Flavoured, the new vitamin C drink launched in March 2020 under the company’s production and the joint venture-A Woody Drink company limited (AWD)’s management. In June 2020, the company released Woody C+ Lock Orange Flavoured while beginning to export to neighboring countries in CLMV in a non-significant amount.

Overseas sales of energy drinks were THB 2,219million, an increase ofTHB 472 million or 27.0%, of which 81% was sales to CLMV market, 7% to China, and the rest 12% to other countries of which the majority were orders from Yemen and Afghanistan.

 

In addition, the Board of Directors approved a dividend payment of THB 1 per share to be paid on September 4, 2020. The ex-dividend date is August 21, 2020.