Thai Beverage Public Company Limited (Y92) Earnings Call Transcript & Summary

Thank you for joining the Thai Beverage FY 2020 Results Call. [Operator Instructions] I will now hand over the call to the presenter, Ms. Namfon Aungsutornrungsi, ThaiBev's, Head of Investor Relations and a member of ThaiBev's senior management team. Thank you.

Good evening, ladies and gentlemen. Welcome to ThaiBev's 2020 Financial Results Conference Call. I am Namfon Aungsutornrungsi, Head of Investor Relations. For the conference call tonight, I will start with a summary of the 2020 results, then we will open the line for our Q&A session with our management team here. For the summary of the 2020 results, total sales revenue of the company for the year ended the 30 September 2020 was THB 253,481 million, a decline of 5.2% when compared to last year. This was due to a decrease in sales revenue of beer, nonalcoholic and food business from the impact of COVID-19 pandemic, although there was an increase in sales of spirits business. Net profit was THB 26,065 million, decreased 0.1% compared to last year. This was due to a decrease in net profit of F&N and FPL, a change in net profit of food business to net loss and due to other nonrecurring costs and deferred tax utilization related to beer business restructuring during this year. Although there was an increase in net profit of spirits, beer and a change in net loss of nonalcoholic beverages business to net profit, however, our net profit from normal operation increased 10.1% year-on-year to THB 28,725 million. The Board of Directors has proposed to issue a dividend of THB 11,553 million or THB 0.46 per share, which is 51% payout ratio. Please note that the interim dividend was paid in June 2020 at THB 0.1 per share, so the final dividend will be THB 0.36 per share. For the highlights of this year. In 2020, the company's spirits business generated sales revenue amounting to THB 117,297 million, a 2.2% improvement compared to 2019. Despite being affected by the closure of entertainment venues and restaurants as well as the temporary ban on alcoholic beverage sales from April to early May, the spirits business remained resilient and recovered quickly as spirits are mostly consumed via off-trade channels. Sales volume recorded by the business increased 0.2% year-on-year when including the Grand Royal Group's sales. The spirits business reported net profit amounting to THB 22,271 million, a marked improvement of 14.7% year-on-year together with an improvement in spirits profit margin. The company's beer business recorded sales revenue amounting to THB 106,871 million, down 11.3% year-on-year with total sales volume decreased 12.7% year-on-year due to the impact from COVID-19 and implementation of Decree 100 in Vietnam legislating zero tolerance for drink driving. Excluding Sabeco, total sales volume decreased 0.9% year-on-year. The net profit of the company's beer business increased 7.3% year-on-year to THB 3,519 million. In addition, the prudent cost control and the successful management of the COVID-19 situation in Thailand have enabled the domestic beer business to report satisfactory profit growth this year. The company's nonalcoholic beverage business generated sales revenue amounting to THB 16,281 million in 2020, down 3.1% year-on-year due to a 3.8% decline in total sales volume. Nevertheless, the nonalcoholic beverage reported a net profit of THB 656 million, up 165.7% from the net loss last year. This was due to an increase in gross profit, a decline in advertising and promotion expenses and staff costs as well as an increase in other income. In 2020, the company's food business recorded sales revenue totaling THB 13,172 million, down 15.4% year-on-year. The food business was severely impacted by the pandemic and measures by the government to shut down department stores and restaurants, which resulted in a significant decline in the sales revenue. The company implemented cost control measures and negotiated for rent relief to mitigate the impact from store closures. The food business reported earnings before interest and tax, or EBIT, of THB 144 million. However, the food business incurred a net loss of THB 101 million in 2020 as compared to our net profit last year. For the international business, the company's international business recorded sales revenue totaling THB 62,627 million in 2020, down 18% year-on-year. This was mainly driven by a 21% decline in beer sales due to the implementation of lockdown measures during the onset of the COVID-19 outbreak. However, revenue generated by the international spirits sales decreased by only 1% year-on-year due to the appreciation of local currency over the Thai baht. We will now open the call to any questions on our results. For the questions, can we please start with the question from Sabeco so our management on Sabeco can go to another appointment. Operator, please open the line for Q&A.

[Operator Instructions] Our first question, Minling from Kasikorn Securities.

Yes. I would like to ask about the situation in Vietnam right now about the Bia [ brand ]. I see the number in term of half-on-half basis that it's improved like THB 3,000 million. So I would like to know that the situation is better right now. Or what can I expect?

This is Bennett from Sabeco. I mean you're referring to the results that's published. So as probably most of you know, I think Vietnam handled the COVID situation pretty well. In fact, a lot of restaurants are open, and people are actually having meetings and events right now. But not to the scale of what we had last year, but it's generally improved. So for the last quarter, we see month-over-month improvement in the performance, so for July, August and September. So we've seen improvement. Thereby, the quarter was an improvement over the previous quarter that was reported. [ All that made us to ] caution is that I think it is coming -- this COVID situation, plus the economic impact of the COVID situation, has taken effect. We believe that there'll be some softness in the coming months before, I hope, buying starts again during the Lunar New Year period. So again, I mean, the last quarter was good because it's coming back, but I think we -- don't be too excited. The reality is that the country is still pretty much locked down with some domestic activities. But that's not going to be a big jump or a big increase over the last year.

Our next question, June from Goldman Sachs.

Bennett, this is June. I have attended your conference call before. I just want to have a follow-up question on the -- your new product, exciting product, Saigon Chill, which is trying to break into the sub-premium segment. So my question is in terms of compared to Saigon Special, which is your existing product, can you sell your Saigon Chill in the same drinking outlets as where you are currently also selling Saigon Special? Or you need to actually try to discover -- try to penetrate into more premium kind of drinking outlet in order to sell your Saigon Chill? As we know, we absolutely have to have a market share in the on-trade segment for this sub-premium sector. So I'm just wondering how easy or how difficult are we to try to penetrate into those more premium drinking outlets. Do we already have a presence somehow?

Okay. First of all, I think we are all excited about the Saigon Chill. The feedback from consumers and even distributors, retailer has been the packaging is beautiful and the product is good. So far, for me, as far I'm concerned, almost 100% of people who have tried the product said it's good and the product looks -- packaging looks good as well. This is our first real foray into the sub-premium market. The sub-premium market is dominated by our competitor, Heineken, with Tiger, Tiger Crystal. So we also try to participate in this area with Saigon Special, but we are not as successful as them. But I think we are very confident that Bia Saigon Chill will be a big competitor for them, and we hope to be able to gain some share in the sub-premium market. Now in terms of the distribution, I see upsides to it because Saigon Chill can go into any Saigon Special outlet. The taste profile is a bit different. It's a bit lighter, and it's in clear bottle. So the target segment is slightly different. At the same time, I think with this product plus the portfolio of the other brands, we are able to go into more outlets. In the past, I mean, if we have Saigon Special, Saigon Export, Saigon Lager and 333, we can go to certain outlets. But with Bia Saigon Chill, we can even go to even more higher-end outlets. So I think it's opened up more opportunities for us. So we can sell into our Saigon Special outlet again. And even if there's cannibalization, it's actually good for us because there is higher margins because it's higher priced. And we also have opportunities to go into new outlets that we've never been in before.

Right. Okay. And one last follow-up question is regarding your current stronghold in the mainstream segment or the mass segment. And then as we know, the competitors are trying to also penetrate into -- so you go up, they go down, right? So they're trying to also launch new products to try to penetrate into the mainstream segment by launching a cheaper brand and also more nationwide coverage, go to tier -- lower-tier cities or rural area. So how -- what do you think you can do to try to protect your market share in place of this -- the competitor being quite aggressive trying to take your shares from the mainstream segment? That will be my last question.

Okay. I think the mainstream segment is a big segment. I think we have got a few brands in this segment. We've got Bia Saigon Lager. We've got Bia Saigon Export. To a certain extent, we have 333 as well, 333. So I think everybody wants to get into this mainstream as well, especially those who are not -- those competitors who do not have brands or products in this segment. But effectively, if you have been selling higher premium products, if you try and come to this segment, you tend to give away margins. If you come in with a higher margin and a lower-margin product go into outlet, you may cannibalize by downwards. For us, we cannibalize -- we probably cannibalize upwards. So there is risk on that side. Regardless, I think we also launched a beer called Bia Lac Viet. And to us, Bia Lac Viet is also a mainstream product that is used to complement our Bia Saigon Lager and Export to go into those areas to fight. So we do not have to discount or we do not have to do promotion -- too much promotion for Bia Saigon Lager to protect our margins. But we can use other products, other brands to protect it and fight against competitors. So I can't deny that everybody wants to come in, but I think we have a portfolio of mainstream product to be able to handle them at different places. So we have different brands as our brands to take on competitors in different areas.

Our next question, Permada from UBS.

I've got just 2 quick questions. In prior sort of briefings, you've mentioned rising home consumption as a trend. And over the last couple of years, that's been the trend, too. We've seen increasing off-trade share in the Vietnam market. For the industry from Saigon Beer's point of view, what is the current breakdown in terms of off-trade and on-trade? And in regards to how Sabeco sees the market of premium, sub-premium, mainstream and economy, what would be the industry breakdown as well? If you could give us some color on that, that would be much appreciated.

I think I have said in my last briefing that we are more off-trade. We are more than 50% off-trade, and that continues to be the case. I think during this pandemic period, 9 months to 10 months, that has increased a few percent in terms of off-trade in tandem with the market. The market has grown more off-trade than on-trade obviously because the on-trade is locked down, right? So we are moving in tandem with the market during this period. We believe that, I mean, ultimately, the growth of off-trade will continue, but there always -- I always believe that up to a certain extent. In most developed nations, you see the off-trade growing and then up to a certain level, it settles off. But we are not at the stage that it is settling off yet, so we still believe that it will grow. The COVID situation accelerated that a little bit. But I think that once everything is lifted -- or travel restrictions and everything is lifted, you'll go back again. But -- and maybe you will not go back to the old level, but it will go back again -- down again before it goes up again. So that's our view on the off-trade. In terms of segmentation, I mean, again, the biggest segment is the mainstream. The second biggest segment is the sub-mainstream. And you compare the 2 -- combine the 2 is in excess of 70%, 80% of the market. We estimate it's about 70%, 80%. So most of it are in mainstream and sub-premium [ holds for ] the market. And during this period, again, there's a little bit of down-trading. So people are trading down a little bit to mainstream products. And even if they consume the premium products, I think there are more deals and also promotions, discounts and so on during this period. And for us, I think when we started launching Bia Saigon Chill, we see competitors reducing their price to, I mean, compete against us. So -- but we determined -- I think we have determined we have a good product, good packaging. And the only thing, I think, that's stopping us is getting the bottle to the hands of the consumer. Once -- I believe -- I strongly believe, very confident, that if the bottle gets into the hands of consumers, [ we'll have a winner ] and I think they'll like it. And I think if we continue to sell it and be present, they will continue to drink it.

And just one quick follow-up question. In regards to the trade loading or inventory loading that you alluded to in the first quarter, by now, has that completely normalized or there's still quite a significant element of that in the market?

I think -- you talked about trade loading. I think that -- just bear in mind that in -- for our business, our business is cash. We don't have credit. I think our competitors, they have some credit. We don't -- we are cash business, which is good for our shareholders. And with only cash, what does it mean? The distributors are very careful in taking on stock, so they don't load unnecessarily. There's no point for them because the cost of capital is high. So there is a limit to how much they can load. And usually, they will try and keep minimal stocks until end of the month in order to hit certain incentives probably. So I think it's pretty normal. But I think during this period -- during the Lunar New Year, there will be more loading from [ our comp ]. I think there'll be a lot of people trying to ask the retailers to load up [ beer ], which is normal. So this is nothing different from the past few years. Everything is about the same. There is always some loading to a certain extent during the Lunar New Year period. So I do not see anything significantly different from previous years.

Our next question, Paul Chew from Phillip Securities.

Just one question for me for Sabeco. I know it's harder to determine numbers sort of long term. But can you comment on the longer term or lingering impact of Decree 100? Is there like a permanent [ gap ] down in demand for alcohol? Or will the market adjust? Just one question.

I think that the Decree 100 coupled with COVID-19, we're seeing the change in behaviors of people. So I think people are behaving better. There's always a knee-jerk reaction initially on both sides. One is from the authority side. I think they will be stricter. And of course, the -- on the other side, on the consumer side, they will be very worried, right, and so on. So in the short term, there will be a knee-jerk reaction. But I think as you move to the middle term to long term, people behave better. The implementation, I think, will be more moderate and not as -- it's almost [ close to ] 100% in the past of enforcement. And plus the fact that I think -- hopefully, the government -- there are people trying to talk to the government about some form of tolerance for alcohol. I think with all these, I think you will normalize again some -- probably, hopefully, in the short term. So we see behaviors change. We hope the authorities will change the implementation of the law in terms of enforcement and also on the tolerance. So with that, I am hopeful that in the coming -- in the short, midterm, there will be some changes to -- and it will not dampen as much, and I think it will slowly come back again. I mean, hopefully, demand will come back again.

There are currently no questions in queue. [Operator Instructions]

Thank you, Khun Bennett, for helping us answering the questions about Sabeco. So as of -- so right now, we have no more questions for the Sabeco side. We can open the call for the questions regarding our business in Thailand. Operator, please go ahead and open the line. Thank you.

[Operator Instructions] Our first question, Divya from Morgan Stanley.

Three questions from me. The first is on the spirits business. I see that the spirits business volume was up about 8% to 9% in the September quarter, which looks quite high. So could you just confirm this as to how much of this is domestic and what's the trend been in October, November, especially since last year would have been a high base? So just curious to know how it's been shaping up. That's the first question on spirits. The second question is on beer. I wanted to understand that the implied number, again, for the September quarter suggests that both domestic and Sabeco were probably down in volumes in mid-single digits. Again, can you just confirm this and also give some color on the market share for the domestic business in beer? And last question is just trying to better understand the need and the intention of management via restructuring from a deleveraging perspective. Given the low cost of debt, very solid cash flows, just trying to better understand why management is more keen on deleveraging the balance sheet at the current point in time?

Divya, this is Prapakon, CEO of spirits. First, before we just answer the -- where we are in the spirits business, I just want to say that we announced full year earnings with the segmentation with the spirits business delivering the -- both top line revenue, gross profit, EBIT, all kind of measure, EBITDA, net profit. This level that we have for this year is the highest level that -- since we listed on the exchange. So it's been a very good year for us if we look just at the number. So I think we have been very successful. First, the first 6 months, up to March, in Thailand, there was no COVID impact maybe perhaps the last 2 weeks of the 6 months. That's why we had a very successful period upselling. And the brown spirits, we also have certain price increase that we were [ playing out ] in the first 6 months of the year, therefore delivering a good, solid volume-based growth in the first half. Coming to the second half, obviously, everyone know, April was a ban on sale. And in May, we had -- now that we have announced earnings, we can probably say that in May, when we are allowed to sell, we basically covered pretty much almost everything that we lost in sale in April. So by the time we end June, we are looking quite all right, slightly down. The fourth quarter has been good -- this is all about Thailand. The fourth quarter has been good. While spirits sales are doing performance very well given the situation, we believe there are tremendous amount of volume trade downs in Thailand. And because -- I mean, I think it lies -- everyone knows, it's not about the spirits. It's about Thailand economy. It's about tourists not arriving in Thailand. But that's not because of Thailand. It's COVID. And the travel industry, the airline industry, all affected. What it does to do with -- in the major city in Thailand, there are less people because there are less opportunity for the mass laborer, low-skill labor, low-skill job. And hotels, the larger hotels, too, are not open. Therefore, related industry [ are still ] down in the major city. What I want to say is that it then deliver population back to the outskirt. Meaning the northeast, the poorest states, the poorest part of the country have -- now have more population because people returned home. And therefore, we believe that with our strength in distributions in our -- with our wholesaler and our strength in our brand sale to our cash brand management, we have approximately about 1,200 brand sale roaming around the country and cover the whole, basically, traditional trades. And we believe that -- based on our number, we believe we have the most number of brand sale than any one single company in Thailand. So with that, with the populations going back home, we have started to be more farmers like. We believe our strengths are playing well. We have seen in the fourth quarter. I would say we are up especially in the white spirits sale. In the fourth quarter, our brown spirits sale are quite maintained. There are certain part of the brown spirit that's affected by on-premises, which is that less people and -- less people in the night trade. So those Blend 285 stand out. But we have other brands that continue to gain strength and market share. So our total market share in the year, and especially even in the fourth quarter, are not declining. They are maintained. And therefore, having said all of that, so we closed the year in Thailand with positive volume growth. We had very good raw materials input costs. We had very good strategic way of dealing with the trade. And we did not have an opportunity to spend lots of money in concert and trade marketing because of social distance. So with that, we deliver very good result for the year. So I think that's probably a good 3 minutes just covering most of the concern that you have. As for going forward, as usual, we're not talking about what's happening next. But so far, so good.

Divya, this is Kosit. For the domestic beer, the first question on the -- regarding the volume of the beer -- domestic beers, I understand that despite the COVID situation and the government bans of the alcoholic sales in April, I think, firstly, we start the first quarter with a very aggressive strategy. So I think we managed the entire year as we have managed to close the year with a slightly better volume than last year, right? So that's the first question. The second question is regarding the beer market share -- domestic beer market share. I think -- I'd love to tell you that I think the market share at the end of September, the whole year, I think it's, by far, we managed to close the whole year with the highest market shares, I think, since the past, what, 12 years, I think. We have reached the highest market share comparing to the past 12 years. So that's the good news for us. Thank you.

So for the third question, Sithichai, CFO, and you asked, we make a [ BLE ] structure. The main purpose, we would like to set our beer [ either ] in Thailand or Vietnam at the same license and holding company, which is BeerCo set up in Singapore. The objective is to measure the performance against other peer beer group. Let's say, for other beer group, we can compare the performance. And for [ our other objective ], we are on the [indiscernible]. You can see that [indiscernible] deleveraging. Or you can see that our performance in the year September '20 compared to September 2019, our net debt is lower than last year, about THB 30 million; even the net debt to EBITDA, down from 4.33 to 3.91. Now we are in the process to prepare -- even we are healthy, lower debt, but we would like to make the company healthy in order to, [ in total, we can have any channel ] we can catch up with. So we are preparing the process to deleveraging, but it's still sensitive information. You will know -- and [ then when ] we are ready [ and now ] to the stock market, we cannot tell here.

Just one small follow-up on the spirits side. So you mentioned that the Thailand business was seeing positive volume growth on a full year basis. Can you just quickly comment upon Myanmar spirits as well? What was the volume growth for the full year there or the decline?

Divya, for Myanmar, I think everyone know the headline. In April -- about April, Myanmar had a bit of lockdown, which turned out all right. Then the second wave came around September, August to September, [ while ] closing. And it still remains very challenging for Myanmar. But for the year -- full year, we had a very slight -- we came in slightly down on the volumes. But Myanmar kyat, as the local currency, has been gaining strength. So when we translate it into our Thai baht financial statement, we look at, I think, about 5% increase in top line. And actually, at the EBITDA level, we also recorded higher EBITDA in Thai baht as well. Actually, in local term, it leveled out to about the same versus last year. So far in the past year, Myanmar came out quite all right. However, I will say Myanmar will remain a challenging ground. And it's just that we have a strong market share, but it's just that the lockdown will affect certain channel sale.

Our next question, Permada from UBS.

I have 3 questions. The first is just to follow up on a press statement from Bloomberg from the 1st of October when Bloomberg -- I think Khun Thapana gave some interview. And when asked about potentially bidding for the Sabeco stake if the Vietnam government does sell it, he mentioned that ThaiBev was still waiting to hear the decision whether they'd like to divest or keep the company. And any decision by ThaiBev to increase its stake in Sabeco would depend on valuation and pricing. So implicitly, not ruling out the possibility of bidding. Can I get some thoughts on that or update on that? Is that still the case? And there's been speculation that ThaiBev is in the pole position to acquire the 36% stake. With regards to leverage, does ThaiBev have the risk appetite or desire to increase leverage materially should it buy the 36% stake? That's my first question.

I think that Khun Thapana also mentioned, I think, that any decision to buy a stake would depend on pricing and valuation and of course, other terms, which we have not heard yet. But I think we are very happy, very comfortable to have the SCIC, previously [ MYT ] but now it's been transferred to SCIC, working together with us. And until we hear more about the government's decision, I think we look forward to working closely with the SCIC to increase shareholder value for Sabeco. On the question of deleveraging, I think Khun Sithichai has spoken very well about it. And of course, if in the event that we should ever decide to do that, of course, we would have to be in the financial position to do so. So I think it's a bit premature to speculate on this position, especially since the government has not really said much further on it. And I think I'll leave it at that. Thank you.

The second question and unrelated to the first question, the beer margin obviously expanded nicely in terms of, if we look at kind of the beer EBITDA, especially in Thailand, grew very nicely for this year. Would you be able to just provide some color in terms of the drivers of that? I mean there is like headline in terms of cut in advertising cost and stuff. But if you can sort of provide some color on the actual initiatives that was done to drive that margin expansion in the domestic Thai beer business.

All right, Permada. This is Kosit. On the beer performance, I think as Prapakon mentioned earlier, I think, see, what you see as improvement is basically is a cut on the spending, especially on the A&P side and I think a prudent cost control at the production side as well. So that's -- I think that's probably to us is something that is -- have a one-off. And I am not so sure how we have -- we are going to actually perhaps improve this furthermore. But I think that's something that I think everyone is doing the same, right, during the COVID. So that's the explanation from my side. Thank you.

What about just maybe some color on the advertising promotion spend on -- because now the situation in Thailand is pretty much back to normal. How do you think about going forward on spending on on-trade versus off-trade, above the line, below the line? Can you elaborate on that?

I think if I touch a bit on -- I think back to the -- during the COVID, I think we actually achieved the spending towards the digital channels. Anything from that moment, we started to realize that I think the -- I think there's increase in maturity on the digital channels in Thailand. And that's something that we probably will be looking forward to as compared to the conventional, traditional channel in the past. Thank you.

And what about on-trade and off-trade? Are you going to dedicate more resources to -- toward off-trade versus on-trade or vice versa?

We are -- we're closely monitoring this trend. And if you ask, at this point, I think cautiously, I think that would be the answer from our side. Thank you.

Okay. And last question from my side. There's the over -- just I think about THB 64 billion that's -- of loan that is maturing in 1 year's time. Can ThaiBev comment on the plans to address that?

So Sithichai, CFO. We make announcement already on last month, 30th of October. In fact, our debenture, the big one, we have about THB 42.8 billion that be due on middle of March next year. We are preparing the way to clear this one. But to make all the -- letting our [ internal analysts ] to be happy. So I make the back-up plan. We make a bridging -- so as a commitment from 6 banks in Thailand, to prepare, to be a bridging -- 2-year bridging loan in the very reasonable price to back up this one. So it means that on March next year, you have the backup money, committed money from the 6 banks in Thailand to clear this one.

Just to add, it's already been announced publicly. And you look at our audited financial statement, there's a subsequent event that's been disclosed. So there's a loan back up and the loan is 2 years from drawdown. We are not intending to draw on that loan until it need to, so that -- the bond deal is in March. So those have been pretty much in the backup liquidity for it.

Our next question, Nicholas from Crédit Suisse.

I just had 3 quick ones. So just to follow up on the SG&A spending. On a group level, that's come down about 10% this year. When you're looking at your budgets for 2021, do you think -- with activities being a bit more normalized, this could go back to the same levels as 2019? Or you're still looking at not being able to do certain activities or just the structural shift into digital means that you shouldn't see such a big increase back to the 2019 kind of levels? The other 2 question was on -- firstly, on the food side, how do you look at returning to profitability in 2021? And -- or will we still see a difficult period given that if activities haven't returned fully to normal on the on-trade? And the last question is just on non alcohol side. The strong improvement in the gross profit margins that you've seen, some of that through a shift in trade channels. How sustainable is this level of gross margin? Or do you expect an even better improvement going forward?

The first question is relating to probably an opportunity to spend on both. I think mostly the alcoholic beverage was beer and spirits in Thailand. Let me just explain that not having COVID spreading in Thailand doesn't mean we are returning to normal. The -- there have been changes. Like mentioned earlier, in the big city, you have less traffic jam, just mean less people. People are out in the province. There's less income circulating. So what it does mean that in the on-premises, pubs and bars, there's less number of pubs and bars being reopened after COVID. So which mean opportunity to spend money have become less, probably by 30%. It just means the number of outlets that you can actually go out and spend money to activate with the consumer. We -- the work grow us money, save some, change some and go into digital mode, then that's your [ right way ] so. But we -- the answer is we have started to look at coming back and spend -- and having activities. But so far, I think in the first quarter, at least from the spirits, we are still at least -- not even close to half of what we used to do. So I think it's just a matter of opportunity to spend right money, right places.

This is [ Tik ] on food. Turning to profit. I think that the situation actually in Thailand, as Khun Prapakon mentioned, it's still not picking up. We expect that -- right now, I think it's a bit slow. The -- even we don't have the COVID situation with the persons, but we still don't have the tourists coming in. Our restaurants, majority is in the mall, shopping mall and also in the prime location, which is the tourist spot also, so that was impact and still. And we see that, until beginning of next year, we see -- might -- if the country -- or Thailand open up, then probably we'll see some tourists. However, based on the situation, we also have been -- we look in terms of ourselves, in terms of the strategy. We put ourselves, work hard in terms of delivery and also the digital platform. So no matter what happened, we still can serve our customer. In terms of the outlet expansion or the business growth, some of the outlets, for example, KFC, which is in the drive-thru area, it's not in the mall, in the shopping mall, we still open those type of stores because it's still growing, and we see the good trend in that momentum. So net-net, if you ask whether we will return -- yes, so if we would like to see whether it's return, I think we do changing and focus on whatever we are -- do our best in the digital, in the strategy. And also, we're doing some kind of the efficiency at the store level, okay? We focus on -- yes, domestic consumption, that's the priority at the moment. We [ achieve ] the target group and we change the strategy to focus on these people. And in terms of the outlet, as mentioned, we focus on where we can bring more growth to the business, which is out of the mall to balance that one-off out. Thank you.

Sithichai, CFO. I would like to add on, on the food. You can see that the top line of the food component, that's only 5% of the total sales of the ThaiBev group. In terms of profit -- net profit, that's 0.5% of the total profit in the group. So they are not significant one.