Good evening, everyone. Thank you for joining the Thai Beverage 1H 2026 results call. All participants have been placed in a listen-only mode. Later, we will conduct a question -and -answer session. Instructions will be given at that time. I will now hand over the call to the presenters, Ms. Namfon Aungsutornrungsi, ThaiBev's Head of Investor Relations, and the members of ThaiBev senior management team. Thank you.
Good evening, ladies and gentlemen, and welcome to Thai Beverage financial results conference call for the six months ended the March 31st, 2026. For the call tonight, I will begin with a summary of our results, then we will open the line for Q&A with our management team here. For the summary of the first half results, total sales revenue of the group for the first half was THB 173,219 million, a decrease of 2.5% compared to the same period last year. This was due to a decrease in sales revenue from the beer and non-alcoholic beverage. While there was an increase in sales revenue from spirits, food, and others businesses.
EBITDA from normal business operations exclude a non-recurring impairment loss from discontinued operations of a joint venture was THB 33,273 million, an increase of 6.9% compared to the same period last year. This was due to an increase in EBITDA from spirits, beer, food, and others businesses, partly offset by a decrease in EBITDA from the non-alcoholic beverage business. The net profit from normal operation was THB 19,162 million, an increase of 7.8% compared to the same period last year. This was due to an increase in net profit from spirits, beer, and others businesses, partly offset by a decrease in net profit from non-alcoholic beverage and the food business.
The board of directors has proposed an interim dividend payment of THB 3,770 million or THB 0.15 per share, the same as last year. In the first half of 2026, the spirits business reported a 1.3% year-on-year increase in sales revenue to THB 65,373 million, driven by a 1.4% increase in sales volume. The performance was supported by growth in the first quarter of 2026, despite slightly softer domestic consumption in the second quarter. The international business continued its growth momentum, supported by a decrease in key raw material costs as well as effective brand investment and marketing activities, the net profit increased by 6.4% year-on-year to THB 12,345 million.
The beer business reported sales revenue of THB 62,639 million, a decrease of 5.4% year-on-year, with total sales volume declined by 0.6%. The decline in sales revenue was driven by weaker first quarter amid subdued market conditions in Thailand and severe weather in Vietnam and unfavorable exchange rate translation. However, sales revenue rebounded strongly in the second quarter. In terms of costs, lower key raw material and finance costs in the first half 2026 resulted in net profit rising to THB 4,430 million, represent a big increase of 40.5% year-on-year. The non-alcoholic beverage businesses reported 5.5% year-on-year decline in sales revenue to THB 31,596 million in the first half.
This was driven by a decrease in total sales volume of 2.9% amid softer consumer demand and geopolitical uncertainties. Increased brand investment, loss on foreign exchange, and higher income tax expenses led to 22.4% year-on-year decline in net profit. For the food business reported sales revenue of THB 11,325 million, represent a 1.6% increase year-on-year, supported by growth of KFC amid cautious consumer spending and economic uncertainty. The increase in marketing and promotion expenses, together with higher depreciation from restaurant expansion, led to a decrease in net profit to THB 69 million. For the others business, which is comprising publishing and the printing business, reported flat revenue to THB 2,445 million, while net loss narrowed to THB 98 million.
The improvement was mainly driven by the education and print segments, supported by higher orders and recurring orders from sustainable packaging business. In addition, the improvement was supported by a lower cost structure resulting from cost control and business restructuring initiative. This is the summary of our first half 2026 financial results. Now we will open the call for any questions for our results. Operator, please help open the line for Q&A.
We will now begin the question-and-answer session. Ms. Zheng Feng Chee from DBS, please go ahead.
Yep. Hi, can you hear me?
Hi, we hear you.
Hello. Can you hear me?
Hello. Yep. We can hear you well.
Hi.
Hi.
Namfon and management, thanks for the presentation. A very good set of results and congrats on that. Maybe two questions on my side. Firstly, on Thailand operation, maybe can you share a bit of sensing how the consumer is doing on the ground, especially, you know, after this Iran war fuel oil spike, and of course, the government is promoting work from home. Maybe a bit on color on the ground after that, the Iran war oil spike, probably from March onwards until now. You know, that's first question. Second question would be in terms of raw material cost, how should we look at it? Is it largely hedged for the financial year? Are you guys also have started hedging for the upcoming year?
Probably like what type of level can we expect, for the next fiscal year? Yeah, maybe these two questions. Thank you.
We will start with spirit and then come to beer. Okay? That's the two main category.
Sure. Thank you. Yep. That's very cool.
Hi. Good evening. This is Songwit from Thailand. I'm taking care for the spirit market in Thailand. I understand you have two questions. The first one, what is the sentiment of the Thai consumer? Everyone know that the situation, what really happened for the first quarter. We have challenging for the late Queen who passed away in the early of the Q1. For sure that we have like some challenging for the situation in the Middle East. Probably like no, more of the risk to risk. I, but I would say that for the sentiment in Thailand right now we have some positive factors. Point number one, in the second quarter, the government released the allowing timing window for selling alcohol. We can sell alcohol from 11:00 A.M. until the midnight.
That, create a big, more of the consumption in the tourist area and also including for the on-trade and also pub, bar and hotel. Second one, people. I think, people for the Thai domestic, people, fly overseas less in comparing to the previous period. Probably they have, traveling in the country, more comparing to last year. All in all, I think, overall sentiment. More of the domestic consumption on that point number one.
For the second question, you're talking about the raw material price. I would say that we already secured the price of the main raw material, meaning the molasses for the Thai spirit.
The contract we have that we secure before the conflict of Middle East happened, that for the inventory, I think, we can secure that with that price until for the next 12 months. I think that all that I could share.
Beer.
Hi. Good evening. This is Nongnuch from Beer Thailand. Yeah. I think Songwit has already mentioned on the overall sentiment. It's quite similar in term of the overall sentiment from the consumer. Okay? As far as you can see, our performance actually we are okay. We don't have the experience on any slowdown. Maybe a bit in the first quarter because of the mourning and other matters, but we catch up in the second quarter. Because of the festive and everything, I think we are still run all the program events and activity. Luckily this year, during like festive, every festive with our activities and also the national activities and events, our performance are okay. We are happy with the situation.
Even though the overall sentiment might be a bit weak, but we are okay with that one. In terms of the cost, actually for beer, main ingredient raw material is on the malt. I would say that for our malt, we have secured it already until the end of the year, so should be fine. Thank you.
Okay. Maybe on the beer, I think what about the packaging cost? I know your cans and your bottles.
Oh, okay.
Would that-
Yeah. No.
Would that be much higher?
Actually, the aluminum can might have the increase in terms of the cost, but again, on the aluminum cost, we have secure it until the year end also. Okay? For Thailand, majority of the packaging is on the bottle, and we have lots of recycled bottles, so I think that helps a lot.
Okay. All right. Thank you. Thank you very much. Very insightful and yeah, I think it's a good performance. Yeah. Congrats on that. Thank you. I will talk back with you.
Next question, Divya Gangahar from Morgan Stanley, please go ahead.
Hi, Divya.
Yes, thank you, and thank you for the presentation. Hi. My first question is just on the domestic Thai beer business. If you look at the volume growth trends, I mean, first quarter was weak, second quarter was very strong. The overall first half is still flattish. How would you describe, you know, your outlook for the second half of this year? Do we go back to the single -digit kind of volume growth? You did comment that the consumer sentiment is still okay. Maybe if you can also comment a little bit on how Chang's market share has evolved during the first half. Are we seeing further market share gains? That's my first question on market share gains and outlook on volume growth, specifically for Thai beer.
Should I pause here and then ask the second question later?
Hi. Hi, hi, Divya. In terms of if you ask, like, what will happen for the second half in terms of the growth in the volume, for us, we cannot give the guidance. Khun Nongnuch can give you more color on what we are planning to do for the, for the second half, but not guidance for the, for the volume in terms of figure.
Hi. Hello. Yeah. Thank you for the questions. For the rest of the year, I think, you have heard about the, actually, the government will also have the co-pay, okay? Which will launch by next month, four months consecutive. I think this will help the overall market will be more active, and people have more money to spend. Okay? For us, what we are going to do, you know that the FIFA World Cup is coming soon, so we will ride on this activity, so it will create more, I mean, active and a lot of activities coming on, will improve and hopefully it increase our consumption. Okay? We also have another activity internally that will launch by Q4.
All in all, we believe that we can maintain, keep the momentum. Thank you.
Thanks. Can you comment on the market share as well for Chang?
Okay. For market share for Chang, we are clearly number one. We have been number one in Thailand beer for 13 consecutive months. Our market share total is 13.3% based on the latest number in March. Thank you. 37.3%.
Sorry, can you repeat that number? We were used to the 40% number. Are we looking at the same thing? The overall for ThaiBev, what is the beer market share now?
Yeah. Yeah. We are about 40%. Sorry, I missed that.
Basically there's no change in market share, overall in the last one year.
Yeah
So, same ratio as before?
No. It's, we maintain, but, clearly the...
Uh, Div-Divya, this is, um-
Got it. My second question is.
Divya, this is Bob.
Sorry, go ahead.
Hi. Just to clarify, I think it's when we look at branded beer, right? We're number one brand. We look at the producer market share, the two largest producer market share combined doesn't actually shift much over the past year. Our competitor have two major brand. It used to be number one, number three. Now they become number two and number three combined. We moved from number two to number one as a brand. Yeah. I think hope that clarifies.
Yes, that's very helpful. Thank you. My second question was just, you know, when we look at the first half, overall, the selling expenses were a bit lower than what it was last year. Is this a little bit of phasing and we should expect the selling expenses, given all the activities that you said on the World Cup, et cetera, to increase? Like SABECO also mentioned that, you know, they will be spending more on A&P in the remaining part of the year. Would that be also valid for the Thai business? Thank you.
Divya, you mentioned about which segment? Sorry.
I'm talking about overall also. I mean, if you look at spirits and beer together, if you will look at beer as well, the selling expenses were lower year-on-year in the first half. I'm just trying to understand the advertising strategy for the second half. Is it more the phasing or do we expect that, you know, the first half it's reflective of how the full year should be, and there's no phasing impact here on the lower A&P spends?
Divya, this is Bob. Well, I think in terms of the remaining of the year, we're cautious in terms of spending. I think estimated rise in consumer, well, the cost that consumers are spending on energies probably bites into their potential spend consumption. Going, looking out, we are planning to tighten up our spending 'cause I think we believe that the return on spend maybe will be affected. If you ask us, because in the first half we're not really spending, we try to maintain that. The second half is actually a low season. Second half for our group, which is starting April is still high, considered high season, but once you shift into May to September, it's a low season. Rainy season as well.
I think general spending are much less during this season.
Perfect. Maybe one last question from me just, you know, on pricing. Has there been any changes in pricing for the domestic Thai beer business? We already know about the Vietnam part, but how about for Thailand beer? Have we raised prices this year, and any changes in spirits as well?
Yeah. We actually have the price increase very minimal over the only one SKU last month, but it's not impact the real consumer.
That's for beer, right? For spirits?
Yeah. Yeah, this is beer Thailand.
Hi, this is Songwit. For the Thai spirit, we don't have any price adjustment for the first half. Thank you.
Thank you very much.
Next question comes from Selviana Aripin from HSBC. Please go ahead.
Sure. Thank you very much for the opportunity to ask question, good evening management. I do have questions maybe follow up on, I guess on pricing from what Divya is actually asking. How would you think about pricing outlook, or rather price raising opportunities, in the next six months? I do hear you that, you know, when it comes to your cost, you're probably well covered until, you know, sort of the end of the year. You know, the consumer wallet is probably a little bit tight because of the sort of rising wallet share on energy demand.
Does it mean then that, you know, pricing will be sort of not a priority over the next six months? How would you think about that, especially going into the, you know, the months after that, the following financial year? Would you actually consider raising prices in advance in anticipation of higher prices down the road? That's my first question. My second question is, I guess a little bit more on A&P. You know, I do hear you about, you know, the fact that the return on the spend, particularly on advertising will actually be impacted, you know, in this sort of environment.
What will actually sort of lead you to change your mind, when it comes to sort of advertising, changes? Thank you.
Hi, hi, Selviana. I go back to the first question first. I think for the pricing outlook is really sensitive, normally we can't give you any guidance on that. We also don't want our competitor to know our pricing strategy as well. For the second quarter, you're talking about our return on marketing spend. What is your question again? You're talking about marketing and-
Sorry, the question is what. Sure. The question is what will lead you to change your mind? Because it does sound like, you know, the downward trajectory is going to be maintained. What circumstance will actually lead you to change your mind?
Okay. Selviana, this is Ueychai here. We can't be specific.
Hi, Ueychai.
Let me tell you in general in terms of policy, we know that cost push is coming. First thing we do is do cost management. We do our best. As you can see that both beer and spirits, we have the main raw materials covered until the end of the year. That is managed, so we don't have any problem on that. Beer, and Tip already mentioned about the bottles and the cans, we have no issue. Okay, we probably look into our A&P first. What I mean is the price increase will be the last one because it's quite sensible, sensitive during the difficult period in terms of economy. We will consider SKU by SKU. That would be the third thing. Okay, first, cost management. Second, A&P.
We actually, we already sort of identifying 30 provinces out of 76 provinces. That represent over 75%, and we will focus our A&P spending on that 30 provinces, which mean that the total A&P could be managed down. Okay. That's the general policy. We cannot tell you whether the beer will increase or the spirit will increase. All the team here are focused on defending bottom line. Okay. Thank you.
Great. Thank you very much, and all the best for the rest of the year.
Next question from Meghana Kande from CGS International. Please go ahead.
Hey, good evening. Can you hear me?
Hi, Meg. Yeah.
Hi, thank you so much for the opportunity to ask. I just have a couple of questions. Firstly, just coming back on the beer volumes, right? It was reported outside of Vietnam, ex-SABECO beer volumes were up about 9% in the second quarter. When we see Thailand industry data, overall it's down. Volumes are down 1%. You've also just mentioned that market share has stayed stable. Just wondering where is this 9% growth in your beer volumes for second quarter coming from mostly? That's my first question. Second question is on beer segment packaging. Sorry, just a housekeeping question, trying to understand how much of your packaging cost for beer is aluminum versus glass. Thirdly is on non-alcoholic beverage segment.
The packaging for NAB, is it mostly plastic? If it's plastic, just wondering till when are you protected for your packaging costs for NAB and have you started seeing any increase in those costs because of, you know, oil price, petrochem product, price increases? Yeah, those are my questions, please. Thank you.
Hi, Meg, can you wait one moment?
Sure, yeah. No worries.
I will respond on the NAB question first. Beer, they are still packing. For NAB, the main cause is packaging and then it is the resin. Of course, the resin price increase. We have secured the old price resin until the end of this month. The new price will be impact from June onward. Luckily, because our sales during the past month, and I am sure that it could be like this, has been increased because not everyone can secure the resin in this country. This month, in the past two months, we are running our factories at 100% capacity. I mean, in the past it used to be about 60%. With this kind of additional volume, the fixed costs help to offset the incremental price of the resins.
I think we probably be able to manage this for going forward by selling more, produce more, so the fixed costs going down to offset the resin price. Right now we are now looking to securing resin from June forward. Okay? Beer.
Hi, this is Nongnuch from Beer Thailand. According to the beer volume that you've seen the improvement in the second quarter, mainly it's, I would say that it's because of the timing because it's a stock-up and also later on it will reflect the consumer, which we can't say. Basically, the second quarter because of the timing. Your second quarter, our can, it's about 20% and the bottle is almost 80%. Thank you.
Got it. Thank you so much for that color. Just one last question on spirits. Sorry, my line previously wasn't clear. Just wondering, can you just repeat how much, I mean, how are the molasses prices trending now? Because we've seen sugar prices have spiked since the U.S.-Iran war. Has any of that started flowing through to molasses? When will you start securing your molasses inventory for 2027?
Okay. Hi, hi, this is Bob, Prapakon, Group CFO. Molasses is main raw material for spirit sector in Thailand. Normally, molasses crop harvesting are December to April. Pricing negotiations start in August, all the way through to February and April. For this crop, we have contracted enough molasses for the season, and we have started contracted since August 2025 and completed most of our contract at February 2026. Those are before the crisis in the Middle East took place. Contracted molasses price that we have in these contracts are at our multi-year lows.
The price, probably what 40% lower than a year earlier, which has continued to decline for the past two years. That's where we are. In term of our current stock, for molasses that cover our productions for the next 12 months. New contracted price is unknown for the season because sugar refiner mill will not negotiate and start contracted until August and September this year. By then, I think the situation in Middle East would be more reasonable pricing negotiation take place. Thank you.
Thank you. That's very, very clear. Just to confirm, when you say 12 months that you're covered, it's from February 2026 to February 2027. Is that correct?
I'm just saying, 12-month stock coverage. I mean, raw material inventory for distillation, 12-month as means, like, as of, like, April end for the next 12 months. But we get new molasses delivery start in December. Normally we don't run down our raw material stock. It's just new crop will get delivered in December. Price is unknown till August, September.
Okay. The new molasses that you get in December, the price you'll only know in August?
For December 2026, right. When I say we have stock for 12 months as of April this year, meaning the stock for what we have taken delivery and the stock that going to be delivered in the next six months, the next five to six months, which have been contracted in price, so that firm price for delivery.
Got it. Okay. Thank you. Thank you so much for all the color, everybody. Thank you, management.
Next question from Permada Darmono from UBS.
Hi, Mada. Hello? Hi. Can you hear us?
Hello? Can you hear me?
Hi. We hear you now.
Okay. Sorry. I think I had some technical issues. Yeah. Thank you for the opportunity. My first question is can you comment on the discontinued joint venture that the earnings was up year-on-year. What was that joint venture? The second question is, given that the NAV year-on-year is down, I think a lot of that was due to Fraser and Neave and the outlook in terms of F&N, at least the comment from Berhad was saying that near-term earnings streaming under pressure.
Would the change in the new CEO in Berhad and so forth, are there any strategies to mitigate that and, you know, to also to speed up the break-even point for AgriValley Malaysia? Thank you.
Hi, Permada. This is Prapakon, Group CFO. The discontinuing, well, I think underlies core impairment loss for discontinuing operations in the JV. This is an investment that we own effective interest of 25% in an e-commerce platform that announced for closure in January, the platform called NocNoc . This is a one-off provision for discontinuing, and it's a non-cash item for us.
Permada, this is Rahul Colaco.
Thank you.
Go ahead.
No, I was just going to ask, Prapakon earlier. The NocNoc is no longer operational. Is that correct?
That's right. The platform operators, actually managed through the JV. That's announced for closure in January 2026. These are a full impairment, and the business has been wind down.
Got it. Thank you. Sorry, Rahul. I interrupted you there.
Yes, Permada. This is Rahul. Answering your second question on NAV. Firstly, you know, the performance in our core markets, in our core domestic markets, the key markets of Malaysia, Thailand, and Singapore have been fairly robust and resilient. In fact, we've held or, in some cases consolidated our market share position with our key brands. We have been challenged because of the Thailand-Cambodia border issues. We are resetting that business at the moment. As you know, we have operations now on the ground in Cambodia. That's being rebooted as we speak. On the dairy farm, you've heard about that probably from the Berhad results sessions as well. Essentially to reiterate, it is one of our largest investments.
It is one of the largest integrated dairy farms in Southeast Asia. We are actually already producing significant volumes of world-class milk from the farm. In the coming weeks, we will be, you know, significantly ramping up our branding operations. This milk is going out in various channels, so both retail and food service across both Malaysia and export markets. We're also looking at multiple formats, so it's not just fresh pasteurized milk, but also UHT milk, butter, and cream. It's primarily going to be under the Magnolia brand. Very much focused on driving that business over the coming months.
Thank you. Would it be fair to say that for Magnolia, currently the strategy is market share build out? Because if we observe the pricing on the ground, it's pretty aggressive.
I think our intention when we invested in this dairy farm is to build self-sufficiency for Malaysia. That's one of the big drivers. We believe that, you know, this is going to help grow the category. We want more Malaysians to be drinking more milk and also in the region. We want to provide fresh milk, world-class fresh milk at the lowest possible cost. We are focused on producing this high quality world-class milk in a tropical climate at a low cost, and which is why we have an integrated dairy farm, right? We grow our own crop. That's really the driver.
I think in the longer term for us, this is more a category building game than necessarily a market share game, but for sure we also want to grow our market position.
Got it. Thank you so much for the color, Rahul. I appreciate it.
Next question from Xuan Tan from Goldman Sachs. Please go ahead.
Hi, Xuan Tan.
Hi. Hi. My first question is around beer. Given that second quarter volume growth was high due to stocking up, do you typically see a weaker volume in the following quarter historically? Second question is on Cambodia. Can you share what was the contribution from Cambodia in terms of top and bottom line for FY 2025?
Hi, this is Nongnuch from Beer Thailand. Okay, it's normal happen, as you know that we have the festive season like in Songkran, it helps sell out a lot. We also will have the campaign on football World Cup in next month, we start shipping by the end of this month. We believe that it will continue the momentum with the volume. Thank you.
Hi, hi. It's last year number. Can you wait one moment? Let me just take it out from our file. One moment for the Cambodia.
Sure. Thank you.
Okay. Hi. Hi, Xuan Tan. This is Kosit Suksingha, the Group Controller. The total revenue for the Cambodia for the group impact is about THB 3 billion . It's about 1% of total group in term of the revenue side. For the profit itself, if you down to at the net profit level, it's about THB 300 million or just very small impact in term of the total group perspective.
Okay. Thank you.
Next question from Hussaini Saifee from Maybank. Please go ahead.
Sure. Thanks. Can you hear me?
Hi, we hear you.
Yeah. Thanks, thanks for the opportunity and good evening. Just one question because all of my questions are being answered. That is on NAB business. Just trying to understand the outlook for the business, maybe more in qualitative terms for the second half of this year. And then just from the point of view of Rahul's comment earlier in terms of ramp up of your dairy products. Just wanted to understand how should we see this particular business ramping up in the coming quarters.
Yeah. Hussaini, maybe if you can sharpen your question because I've already shared broadly what our intention is with the farm, so, and Magnolia. Can I understand a bit more what exactly you're trying to understand?
Yeah. My question is more from the point of view how that will translate into revenues and growth in the coming quarters.
I'm unable to share with you specifics on the coming quarters, but I think what I can share with you is the bigger picture. The intention with the farm specifically is we have, as you have probably heard from the Berhad presentations, is that in the first phase of the farm, we intend to essentially produce 100 million liters of milk a year. We are already in the ramp-up phase, so we are producing somewhere anywhere between 2 million and 3 million liters a month at the moment. That we're in that ramp-up phase and, you know, you can therefore extrapolate that, you know, we're going to be growing this about three, four times from the current base. I think that's the plan over the coming years.
If everything progresses well, we will then eventually move to a second phase where we will seek to ramp up that 100 million to potentially 200 million liters. Hopefully that answers your question. I think the key, the key takeout is that, you know, we really wanna grow this category, as I mentioned earlier, and we want to play across multiple categories, multiple channels, and multiple markets.
Understood. No, thanks a lot. Helpful.
Question from Divya Gangahar from Morgan Stanley.
Yeah, thank you. I just had a follow-up question on spirits. I wanted to get your views on how you're thinking about structurally volume growth in this segment, given, you know, there's been a global decline in spirit volumes across, you know, various geographies. How are we diversifying that portfolio? If you can also comment a little bit on the trends in white spirits versus brown spirits, how that shift is happening over the last six months. Finally, any comments on the Myanmar business, how is that doing and how big is that now as a percentage of your total? Thank you.
Hi, this is Sopon from Spirits Group. Thank you for your question. On the question and concerning whether this is the structural change of the industry, We don't see this is coming to that obvious situation yet, because the situation of over supplying across the globe in many main major markets, I think it's due to if you I think you already understand that after the COVID, during the COVID time, I think the spirits selling so good, so people keep pumping up the liquid to the market, and then suddenly it's become an oversupply. It's actually a cyclical kind of situation that we are facing.
Also, I think, we have to face a little bit of the changing in terms of the demand behavior because again, coming out from the COVID, people may drink differently. We still see that there is a growth in some of the market, and there is an opportunity for us to actually try to capture that. For example, in Thailand, we know that there is a change in terms of when the younger people are coming out from the COVID, they may concern mostly about the health and wellness. We changed our strategy to become a lower kind of alcohol, bringing RTD into the market. It's really a good opportunity for us.
We did that, and then the result is quite good. We are selling okay with the RTD that we introduced several SKU already. Again, that we don't see this is a structural yet. It is actually a cyclical kind of problem that we are facing.
Hi, Divya. Are you still with us?
yes. I was just wondering if you could also comment on the white spirits and brown spirits in Myanmar.
Can you repeat that question again?
Yeah. I just was interested to know what is the now the split between white spirits and brown spirits, and are you seeing any change in that as well, given all these behavior changes for your portfolio? That was just on the mix between white spirits and brown spirits. The last question was on Myanmar, like how big is Myanmar in your overall portfolio now, and what has been the growth trends there?
Okay. I'll take the Myanmar first. Myanmar is now double-digit growth to the portfolio. We are doing very good in that country. We are also the largest market share in that country. In overall Myanmar, value in the whole portfolio is only about 10%. It's still small, with the growth that we see over the years, not just only this year, we've been seeing this for many, many years. I think we have a very good perspective in this country, we're going to see that, we're going to, you know, even continue to, you know, strengthen our position in Myanmar. That's Myanmar. On this question, whether white spirit and brown spirit, any convergence or diversion between these two?
I think that again, it's coming to the category kind of explanation. People may drink... In the previous year, I would say that people drink only those category that they are used to because white spirit used to be like a functional drink even because people are drinking because they, they like to drink after the work to get refreshed. Now more and more people, particularly young people, they may drink across a category. It depends on occasion. Again, we don't see that coming so big in terms of that trend. This is again the demand chain, the dynamic of our consumer. Yeah, again, they keep trying, changing the category. Sometime they drink rum, sometime they drink, you know, whiskey.
In some occasion they may drink, you know, white spirit, for example. Thank you.
Could I just confirm that white spirits and brown spirits are still, like, almost half and half, in terms of your overall portfolio?
Sorry, we may not be able to, you know, mention about that.
Oh.
Okay. Sure. No problem.
Yeah.
Thank you very much.
Yeah. In terms of the volume, yeah, normally white more because cheaper. Yeah.
Yeah. All right. Thank you.
Next question from Zheng Feng Chee from DBS. Please go ahead.
Yeah. Hi. Hi, Namfon. me again.
Hi.
Just one question here. Can you share maybe a bit of color whether the management is thinking about any kind of corporate action to unlock value? I know there have been rumors on the street about BeerCo IPO, Spirits IPO spin-off and so on. Maybe some kind of thinking of like what would allow or what's, you know, kind of like holding management back from kind of proceeding with all this, you know, sort of, I would say very helpful value unlocking activities and maybe a bit of timeline if you guys are thinking about this type of activity.
Hi. Hi. If you track, so far we haven't made any further announcement to update on any core, any Beer Co or Spirits Co. If we have anything to update, we will announce on SGX first.
Okay. Sure. I guess you cannot share any thinking, you know, what needs to happen before you would proceed or are you able to share a bit of color or sorry?
This one is really sensitive to the share price. I'm afraid we cannot. Yeah. Sorry.
Sure. Sure. Okay. Sure. No worry. All right. Thank you.
Next question from Meghana Kande from CGS International. Please go ahead.
Hi. Thank you for the opportunity again. I just have one follow-up on my previous question about NAB, where, in context of the resin prices, it was mentioned that the factories are operating at about 100% capacity because you're seeing increase in the volumes. If we look at the NAB volumes for first half, they were down year-on-year. Sorry, just trying to understand if you can help me tie in the previous comment on increased volumes versus what we saw in first half, just to understand a bit better.
Hi, Meghana. This is Rahul. I think the NAB portfolio is very wide. We operate in multiple different categories and multiple different formats. The example that we were referring to earlier was the PET packaging, which is primarily for iced tea and water. We operate in many other categories where the packaging cost impacts have not been so high. The cost impacts are ranging between 5%-15% for many of the other product formats. It's the PET resin one which we used as an example because that's the one which has the highest impact worldwide. I think the good thing for us in our portfolio is because we have a very wide range of price points, formats, and categories, we are able to offer different options to the consumer.
We operate multiple brands at different price points. I think we are quite well hedged in terms of consumer offerings, and we're looking at playing up specific parts of the portfolio, so that we can address potential down trading opportunities or any consumer behavior changes. That's how we're looking at the portfolio. Hopefully, that answers your question.
Yes, definitely. Very clear. Just another follow-up while I still have you on NAB is on the outlook for the A&P spend. It was previously mentioned that typically it's a slow season for the next few quarters, but does that also apply for your NAB promotional spend as well?
I think it would be hard to generalize. Essentially, we are looking at making sure that we ring-fence our A&P for our specific priority brands and markets. As you heard earlier, we are looking at really ramping up our Magnolia brand with driving the milk coming out of our dairy farm. Obviously we will continue to invest behind that brand and our other key brands such as 100PLUS. We've launched some new innovations. We will continue to invest behind our core brands. Of course, given the overall business environment, we will be looking at our total portfolio and seeing where and how we can optimize our A&P.
Got it. Thank you so much.
Next question comes from Paul Chew from Phillip Securities. Please go ahead.
Yeah. Yeah. Thanks for the call. Just one question. Regarding the cyclical challenges for Spirits, are you still referring to the lingering softness because of the, I guess, the Cambodian, I guess, lack of a better word, conflict, and that's kind of affecting the demand for your Spirit and just the overall weakness in consumer spending? Just a bit more clarity on the cyclical weakness. Thanks.
Thank you. Actually, it's a general comment on the general situation. Again, coming back to Cambodia, we were hit by the situation last year, end of the year. Now as you understand that, the situation is now eased, we are hoping to see that all the consumer around that area, which is basically the white spirit consumer over there will get to come back, consume more on our product, including the labor from Cambodian. Even though now they are not being able to actually coming back to work in Thailand. Hopefully, soon we're going to see, you know, some better situation coming. Thank you.
Okay. In your estimate, I'm not sure you give me a number, but in your estimate, like what kind of percentage point was this set of customers to your Spirit business?
Normally we won't break down in terms of the region for our sales. Sorry.
Okay. Sure. Okay. Yeah. Thanks for taking my question.
Yeah. Thank you.
Next question from Permada Darmono from UBS. Please go ahead.
Hi, management. Can you hear me?
Hi, Mada.
Hello.
Hello. Hi, Mada.
Hi. A question on now that SGX is encouraging forward-looking guidance from companies being listed in SGX, is Thai Bev planning to provide, you know, forward guidance going forward?
Hi. Mada, thank you for sharing this information for us. In terms of forward looking, actually, I don't see that it's like it's such a clear message from SGX in that direction. Yep.
Oh, okay. They haven't communicated with you yet. That's what you're saying?
Hi. Hi. Mada, do you have any other question?
No, no, no. No plan for now, right? That's what you're saying more or less.
Not yet. Yep.
Okay. Got it. All right. Thank you so much.
Thank you.
As there are no further questions, we will now begin the closing comments. Please go ahead, Miss Namfon Aungsutornrungsi.
Thank you for joining Thai Beverage's conference call tonight. For more information, please feel free to contact IR department at ir@thaibev.com. Thank you. Have a good night.
Thank you.