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

Good evening, everyone, and thank you for joining the Thai Beverage First Half 2021 Results Call. [Operator Instructions] I will now hand over the call to the presenters, Ms. Namfon Aungsutornrungsi, ThaiBev's Head of Investor Relations and the members of ThaiBev's senior management team.

Good evening, ladies and gentlemen. Welcome to ThaiBev's first half 2021 ended the 31st of March 2021 financial results conference call. First of all, we would like to say sorry for the delay because we have some technical issue, but right now, we'll start to -- we can resume and we can start the call. I am Namfon Aungsutornrungsi, Head of Investor Relations. For the call tonight, I will start with summary of the first half results, then we will open the line for Q&A session with our management team. For the summary of the first half results, total sales revenue of the company for the first 6 months ended the 31st of March 2021 was THB 131,252 million, a decline of 4.3% when compared to last year. This was due to a decrease in sales revenue of our business segment from the impact of the second wave of COVID-19 pandemic in Thailand. Net profit was THB 16,076 million, increased 8.7% compared to last year. This was due to an increase in net profit of spirits and beer business. And due to last year, there was other nonrecurring costs and deferred tax utilization related to beer business restructuring. Also, there was a decrease in net profit of nonalcoholic beverages business and associates, and a change in net profit to net loss of the food business. ThaiBev's Board of Directors agreed to propose an interim dividend payment of THB 3,768 million or THB 0.15 per share. For the highlights of the first half 2021 results, the company's spirits business was marginally affected by the second wave of the COVID-19 in Thailand. It generated sales revenue amounting to THB 63,876 million, 0.6% decrease when compared year-on-year; and total sales volume recorded by the business declined 1.2% year-on-year. Nonetheless, net profit still amounted to THB 12,866 million, an increase of 3.6% year-on-year due to a rise in gross profit and a decline in advertising and promotional expenses. The company's beer business recorded sales revenue amounting to THB 53,978 million in the first half or 5.1% decrease compared to previous year. Total sales volume decreased 5.3% year-on-year when including Sabeco sales and decreased 7.9% year-on-year when excluding Sabeco sales. However, the company's net profit for the beer business reported a satisfactory increase of 84.2% year-on-year to THB 2,214 million. This was mainly due to the decrease in distribution costs and administrative expenses. The company's nonalcoholic beverage business generated sales revenue amounting to THB 7,592 million in the first half, down 12.6% year-on-year due to a 14.6% decline in total sales volume. However, excluding nonrecurring item for other income recorded in the first half of 2020, the non-alcoholic beverage business recorded a significant increase in net profit from normal operation of 98.2% year-on-year due to prudent cost management. Net profit for the period was THB 333 million. The company's food business recorded sales revenue of THB 5,885 million in the first half, a 19.9% decrease year-on-year. The food business was impacted by the second wave of the COVID pandemic in Thailand, which caused concern among consumers about dining out at the restaurants. Business was also impacted by the restrictions on restaurant closing times in certain areas. Despite efforts to cushion the impact of COVID by enhancing home delivery and takeaway option and by managing costs prudently, the decrease in sales revenue of the full business caused the business to record a net loss of THB 104 million in the first half. The company's international business recorded sales revenue totaling THB 29,832 million in the first half, down 3% on year. The revenue for international beer sales declined 4%, mainly due to the decrease in Sabeco sales revenue. However, revenue generated by international spirits sales increased by 2% year-on-year due to significant growth of Scotch whiskey and Chinese spirits sales. We will now open the call for Q&A with our results. Since we are working from home right now, tonight, we will have Khun Ueychai will be our emcee for the Q&A session. Khun Ueychai is our Director and Senior Executive Vice President and Chief Operating Officer in Thailand. Sirona, please go ahead and open the line for the call.

[Operator Instructions]

Gentlemen, this is Ueychai speaking. I will manage the Q&A. Since we are working from home, this is our first time, so I'll do my best. [Operator Instructions] And then please last question clearly and slowly so we can respond to your questions correctly. Thank you. Please start.

Our first question, we have Thitithep from Kiatnakin Phatra.

Khun Ueychai, can you hear me?

Yes. Yes, Thitithep. Yes, Thitithep.

I just have one question. Yes, I have just one question. In this quarter, your spirits sales declined almost 3% year-on-year. I'm not sure if you can give us a breakdown between the sales in Thailand and Myanmar, and maybe an update on situation in Myanmar, including your production facility and sales and overall situation.

This one I'll ask Khun Prapakon to respond to the questions on spirits and Myanmar. Khun Prapakon, please.

[Foreign Language]

Yes, I can hear you clearly.

All right. This is Prapakon, Chief of the spirits business. The -- since I understand that on our upload, we also show our quarterly breakdown. And it's showing the overall spirit volumes decline, just a very small single digit. The questions you asked have a bit of a [ few fall ]. So I mean in Myanmar, obviously, there's a situation there. So the sales volumes in Myanmar declined by mid-teens in terms of percentage for the quarter. But in Thailand, our white sprits still continued to grow. The reason why the total volume of spirits slightly declined because we have a decline in brown spirits sale, it's twofold. One is last year same quarter, we actually have price increase, so there's quite a fair bit of volume loading in the second quarter of last year. As for this year, there isn't. But the overall consumption of brown spirits, you could imagine, given the disruptions in COVID wave 2 in January, it has impacted the consumption slightly. So the 2 combined, showing the brown spirits in the second quarter coming down slightly. So -- but overall, you can see profitability and EBITDA in both second quarter and the full 6 months have improved in the spirit business. Actually, that's also helping with our other international business in Scotland, although very small. They are improving, and they also remain profitable. Just to cover on Myanmar situation, we run Grand Royal whiskey, the #1 whiskey business in Myanmar. We own 75% of this business together with our local partners. The situation as of now -- I would say, as of now, meaning as of early May, this first 2 week of May, have improved by a lot. People, if you follow the news in Myanmar, you have seen that in February, there's a lot of disruptions, banking system shut down and continued to disrupt through the water festival in early April. So -- and then in mid-April, the water festival, basically, have a 10-day holiday. So the country gone into more quiet. So in the first 2 weeks of May, the situation today, I must say, it's improved by a lot. And in February -- we saw basically, in February and March, what we have sold, we have to collect in cash because the banking system is not operational. As of now, we are back to be able to collect money on through the banking system up to 80% of the sale, so remaining 20% still collecting cash. And we are paying our employees in cash because the banking system for the employees are not quite adequate, long line at the ATM queue. So in terms of the cash collections, they are back to close to normal. And in terms of logistics, we don't longer have anymore logistic backup. And we have enough supply packaging material and everything for us to continue production. We continue to focus on sales and focus on collections, and we do not have [ aging ] issue of our receivable. And our headline sales generally are about 10%, 15% down from normal period. So I think that's hope, give you much comfort as to some impact that we have to take on with the Myanmar ops.

Right. Khun Prapakon, I have follow-up questions, if I may. Since the situation has improved in May, should we expect improvement in sales as well? Have you experienced any improvement in sales? And then the second question is, there are certain listed companies in other country that set up provisioning against investment in Myanmar. But judging from what you said, I don't think your situation -- I mean Grand Royal situation is that severe. Is it fair to say that the risk of provisioning against Grand Royal investment is low? Is it a fair statement?

We do not expect to make any provisions as of now to our Myanmar operations. I think the acquisitions that we took on in October 17, there is actually quite a good size of goodwill. But we have measured that, and we believe the business actually, today, the business makes more money than when we even bought it. And even with 10%, 15% decline in sales, we're still making a good EBITDA level. So I think yes, some of the businesses that operate in Myanmar have to make provisions, but our business still remain very solid given the situation.

Thitithep, Khun Ueychai here, I'm the co-chairman of the company. We have to admit that the situation is very difficult there. But as the Chairman of the company, I'm very satisfied with -- very happy with the outcome. It's a lot better than I expect. We are now trying to -- even though the sales is have some pressure, but we try to sort of maintain our profitability there, and the management there is doing well. We have a good management team there and also a good partner there. So I'm still very confident on the [ DRG ] or the Myanmar business [ in sales ].

Right, glad to hear that. Yes?

Khun Sithichai...

Actually, that...

Hello? Khun Sithichai, can you add in? Can you hear me, Khun Thitithep?

Yes. I can hear you clearly.

I would like to add in Khun Ueychai and Khun Prapakon. For the audit, KPMG, one of the auditors think they have to check the valuation, the impairment of the investment [ to get service a good deal ]. Yesterday, we have the Audit Committee meeting. KPMG, they confirm by the income approach DCF. It's to support our [ own ] investment in ThaiBev and still have no effort for any impairment of the investment of either the goodwill and then to have the goodwill have a headwind to go. Yes, so we are not just enough we have a headwind to compare to our investment. So no impact anything on this one. I would like to add in.

Next, we Nicholas Teh from Credit Suisse.

Just a couple of questions from me. I want to check if you could update us on the beer market share in Thailand. And also, I guess, given the situation now, I wanted to just understand a bit more on what you can do with your marketing and whether you've seen [indiscernible] react in any way, given that you guys have gained more market share from them over the last year or so. And just wanted to clarify one thing on the -- what we said on the spirits volumes earlier. Am I right in saying that white spirits continue to grow, whereas the brown spirits declined a bit year-on-year? So overall, is Thai spirits a bit flat, and the decline is more so in the Myanmar side?

I will address the second question. So to save time, what are you saying is just correct. Our white spirits is still growing and then brown spirits [ relative with nature ], some of them is consumed on-premise, so it's declined. So overall, it's flat, you are correct, in terms of volume. And then on the profitability, as Khun Prapakon has mentioned, is still growing nicely. Okay. On the beer questions, I would like Lester to address that about the Thai beer market. Lester, please.

Yes, sir. Good evening, this is Lester here, heading up the Thai beer business. You talked about the market share and our A&P spending and how the competitors are going to respond. Let me take that step by step. Our market share at the moment now is close to 40%. So while the market has declined earlier, you heard Khun Namfon give the overview that revenues have come down. The beer market has actually declined by about 10% this year. So while our share is close to 40%, we've actually picked up share during this period over the competitor. And we've done this with reduced A&P spending, obviously, because of the COVID period. So moving forward, do we think that they will pick up the A&P? Hard for us to say, but what we're saying is -- what we feel internally is that we've done very well picking up share with reduced spending. And we would like to keep it that way. So moving forward, we want to focus on the more efficient areas of A&P, spend more on that where we get volume and share returns, and cut down on the parts that don't give us as good returns. So moving forward, we expect to pick up more share at reduced spending compared to a year ago. Thank you.

Next, we have Divya from Morgan Stanley.

I just had two questions. The first question was just on the raw material and packaging costs. I noticed that this increased for both the spirits as well as the beer business. Just wanted to get a sense on how you are seeing that going forward? And should we be expecting some price hikes to be taken to offset that? And a question related to that is just if I look at the implied domestic beer ASPs, they seem to have increased a bit year-on-year. I wanted to get a sense if there's a change in mix in the beer space in Thailand or is it some sort of pricing the highs that has already happened. And then this is the last question, it's on just the quarter-to-date trends because last year April basically had no sales in Thailand for alcohol. But now we are again going into a restriction period. So if you could help us understand on an aggregate basis, quarter-to-date, what are you seeing in terms of volume trends for both beer and spirits, that would be very helpful.

Okay, there's three questions on the raw materials. On the beer, I will ask Dr. Pisanu to respond to that. And then spirits, I'll ask Khun Prapakon to respond that. In terms of beer domestic ASP, I think Khun Lester can look into it. I don't know whether it's Vietnam or in Thailand, but please prepare. On the third question, I'll just respond myself. Yes, you are right. Because last year, April, we only sell only 1 week, but this year, we have a 4-week sales. So cost is look good. That's all I can say, nothing much. So the third question is answered. Now the first question, Dr. Pisanu, please?

Yes. You are dead right. The commodities rise up, skyrocketing. However, we are so lucky in the way that we have booked the beer malt ahead of the game until next March, okay? So we are really well prepared on the key raw material. Also the hubs, we have already booked in advance. Now may I also help Khun Lester to answer you about the packaging cost of the beer production. We are doing not that at all. We are doing something like over 60%, not quite 65% as we targeted. But of course, along the year, we will achieve the budget of 65% or a little bit over that for sure to use the returnable bottle. Thank you very much for your question.

Thank you. Thank you, Dr. Pisanu. So Divya, you ask this question again next March, so it's okay? And then on the spirits, Khun Prapakon will respond to your question.

Divya, can you repeat your questions again, please?

The raw material -- go ahead. Go ahead, Divya. Go ahead.

Yes. Okay. Khun Prapakon, I was just wanting to know that raw material and packaging costs have gone higher, but despite that, the spirit gross profit margin also improved. So can you just comment on what's driving that improvement? And how should we think about it in terms of April and May, if you have any -- I know Khun Ueychai answered, but just wanted to get a sense of when you look at it on an aggregate basis, how is the current sentiment on the volume run rate.

Okay, in terms of -- I will comment on Thailand because I think the majority of our spirits business, over 90% is still coming from Thailand. And in terms of raw material, there's a good, there's a bad part. I mean there's a good part, it's -- well, the negative part is they are somewhat higher in molasses in good cost. People who've seen the news, they know that molasses for this crop is a bit short compared to a year or 2 ago. So that's why price is moving up a bit. We have to -- we have changed some -- changed the packaging material or changed bottle shape of HongThong brown spirit 700 ml. So we switched to 100% new bottle for the time being. And we will -- hopefully, in the future, we will get more used bottle coming back in 6 months time. But the positive side is that the collection of our brown -- I'm sorry, white spirit bottle we use because majority of our volumes in Thailand is actually white spirit. And bottle -- white spirit bottle for Ruang Khao, the use rate that we can collect and use are improving, moving to our target range. So these have started to pay off. So these 2 are offsetting each other. That's why we are -- we have a good control on costs for the 6 months and A&P-wise because these 6 months is compared to our 6 months years ago prior to COVID. Actually, COVID has been around with us just about a year. So I think it didn't really hit Thailand until late March last year. So the 6-month prior year actually have no COVID, and therefore, we have good spending in terms of A&P. And that A&P has been tightened because we continue to live in this new world of new normal and we have basically used less spending on A&P in both brand and trade marketing. So that's why the 2 combined is giving us a higher profitability. Okay. Divya, I hope that explains.

Yes. And Khun Prapakon, you don't need to take -- so there's no need for you to take a price hike in spirits. I mean is that something that would be considered? Or it's not required, given where your raw material costs are locked in?

If there's an opportunity to take price hike, I'll take it any day and every day. It just that the opportunity have to be reviewed. I think we run a very profitable business. But in any cost [ approach ], if there's an opportunity to move price up that will not impact our long-term sales volumes, we will do so. So I think we have certain review. Then last year, 6 months last year, we actually took price up on brown spirits prior to COVID, yes. So this year, when we look at brown spirits 6 months, on 6 months, I think, the decline somewhat have to do with overbuilding stock from price increase and somewhat decline in consumption due to COVID and it's not really due to price increase. So I think we are quite safe on that. As far as white spirit, we haven't taken price increase for the past 2 years. So you're asking the right question. So we're looking at the opportunities.

Our next question, we have Tunde Ojo from Harding.

This is Tunde from Harding Loevner. Actually, my first question is on raw material cost inflation, which you've answered on the previous question. But I also wanted to ask a bit more question on Vietnam, two questions there. First would be on the drunk driving law. I know there's been no mention of it recently, but I wanted to ask if that law is still there and if it's impacting volume trends in Vietnam.

Sorry we got disconnected from for the Vietnam side. Do you have other questions regarding Thailand?

Stop, stop. Mike, maybe you can answer that. The Decree 100, what is the impact? Any impact? Is it worse or better? Michael, please.

I think the Decree 100 is still there, and obviously, it still has an impact, but certainly not as bad as when it was initially implemented in Vietnam. I think people get used to it after a while. Plus, during the current situation, it's very hard to see the impact, especially when the COVID pandemic has shut down a lot of -- it's caused a shutdown of many restaurants and pubs and other establishments in some part of Vietnam. So I think that would be the current assessment.

This is Ueychai. I think from our experience in Thailand, same thing happened. In the beginning, everybody is so tight. The consumer are tight, really, really excited. And the governments are very tough. And after a while, the consumer used to it and the government are loosening up a bit. Actually, this is the same thing that we are seeing now. Thank you.

The second question is on the new product in Vietnam, Saigon Chill. My last update was that it's been launched since last year, you guys had some problems with the channels with competitors trying to block it. Has there been any update on that in terms of being able to address that issue? And how is the reception of that new product since it's been about 6 to 8 months now that it has been launched? Has it been good? Has it been beyond your expectations or below your expectations?

Okay. Ojo, let me check with Bennett. Bennett is coming back. Is Bennett there? If not, Ojo, I have to leave this question when Bennett connects back again, okay? Okay. I will...

No problem at all, no problem at all.

Thank you. Thank you.

Our next question we have Cezzane from CIMB.

[Foreign Language]

Yes. Go ahead.

Khun Ueychai, I just wanted to check on the A&P, you have done really well in terms of cost control. But I also noted that there was mention of market share coming up despite this A&P not being spent. Can you just give us some color on what you have been focusing on and maybe what the measures have been? Because previously, pre-COVID-19, A&P was actually one of the biggest things that helped to drive this market share. What are the big changes, if you could share, please?

Is it beer or spirits that you're asking?

Beer.

[Foreign Language]

Thailand. [Foreign Language]

Thank you. Let's save your call. After [ a few minutes ] Bennett will come back, I'll ask question to Bennett.

All right. Cezzane, this is Lester here. A really good question. What is done, obviously, because of COVID, a lot of the big events were canceled or postponed. Many canceled, especially at the end of the year, the December period. In the December period, there are a lot of beer parties and lots of festivals going on. Also during the cold season, lots of music festivals are going on. So all those were canceled or postponed to a later date, probably next year. So big savings there. So what we did actually is to use the money for distribution. What we tried to do is to improve our distribution and therefore, getting the sales. At the end of the day, it's a lot of sales-driven activities now rather than the big events and big, big mega events to build the brand.

Okay. Because I remember -- I see. In the last call, I think there was some talk about vans going around, and I can't remember whether that was more for spirits or the beer side. Or is that across the board in Thailand? Is that one of these distribution measures that you are referring to?

The distribution that we're doing is more area management. So we get very focused into selling into outlets. Selling into outlets first, and then if we already sold it, to improve the sales per point of distribution. So it's really down to each particular individual area around the country. Our guys are pushing out and getting more distribution, getting more sales per point of distribution.

Okay. Got it.

So the big effect for sales really is to get our stock out there. So when we increase our stock rate, the volumes -- the sales volumes go up, and that's what we've been pushing on.

Okay. Got it.

I'd like to add that because I think there are 2 wars for both beer and spirits, off-trade war and the on-trade war. The on-trade, because of the COVID, we stopped because I think we have to admit that the on-trade, the more you spend money, the more you win. And then the competitors spend a lot of money. But on the off-trade, we have very strong competitors. We have [ 1,200 cash rent ], running around the country, call it about [ 300,000 ] outlets out of the [ 450,000 ] universe. And then when COVID happened, people are moving back -- I mean, workers are moving back to their home. So they're going to the upcountry, which will -- actually, we are very strong in that area. We are likely to increase the number of cash rent, [ 200 ] cash rent last year on time with the COVID coming in. So I think that is the advantage and benefit that we get on the beer side, okay? Thank you. So I would like to go back to Ojo's question since Bennett is here already. Bennett, Ojo asked about -- you give the color on the new products on your Saigon Chill. Would you give the response to Ojo, please? Bennett, are you in?

From Cezzane, right?

Yes, yes, yes. Bennett, I'm hearing you.

Cezzane, so you asked -- you or one of you, you asked during our quarterly briefings just about a week ago, right? And the answer is still the same, it's within our expectation. But we think that it can grow even faster, and that's why we invested a little bit more in the first quarter of the year. That's why you can see selling expenses in the first quarter increase. So in short, I think it's within expectations. We think it can improve, and we're investing more in the brand.

Our next question, we have Permada from UBS.

My first question, in mid-April, I read from the local papers that the government was talking about potentially increasing excise and introducing new tax measures like for new products like canned drink and also tax for existing categories like alcohol. Any color on that in terms of the latest thinking from the government?

You read from the local newspaper, what country?

Thailand.

Oh, Thailand. I'm in Thailand. So let me respond to that question. I think the government, if they are not busy with the pandemic, they're always talking about tax, right? That's quite normal. But I mean, we didn't hear anything yet. Normally, we will hear things 2 or 3 months ahead. At the moment, I can say -- I have to say that we haven't got anything -- movement on the tax yet. But I cannot guarantee that the tax will not increase because at the end of the market year, they'll probably discuss again. The market year here is in September. And this year, they spent a lot of money on the COVID pandemic things. They may talk about it, but I didn't hear anything yet. I didn't hear anything on the spirit or other alcohol yet.

I mean in response to that, I think Khun Thapana previously was also mentioning that increasing prices as part of an excise management strategy, is management going to try to increase prices ahead of potential excise increase?

No. No because right now, the tax systems is based on the price, percentage on price. So the minute you increase, then the tax increase. That's why I believe that because of the new system now based on your retail price, the government will not increase the tax in terms of rate very much because the minute you increase your price, your tax is coming in. So that's what I think. What we do, one thing we can assure you that anything happen on the tax rate, our policy is to maintain the margin percentage, not even the absolute margin in baht, the margin percentage. Which means that if the tax increased THB 10, we probably have to increase like THB 14 to cover the margin. So that has been practiced during the past 16 years that I'm in this -- part of this company. Thank you.

And second and last question, with the deferral of the potential beer IPO, are there any other sort of potential strategic actions that management is exploring to maximize shareholder value? I mean previously, in 2019, Khun Thapana was saying that he was open to collaboration with international brewers, partly the rationale to look at opportunities to delever as well as knowledge transfer, product capabilities transfer. And those rationale continue to hold. Are there any sort of other measures that you'll continue to explore to crystallize value?

I think what Khun Thapana has mentioned earlier has covered everything, and we're still exploring that seriously because we're still open for any opportunity coming in. And then for the shareholders, I think we will make sure that we can enhance the shareholder value if anytime there's opportunities. That, I can respond for Khun Thapana like that.

[Operator Instructions] Our next question, we have June from Goldman.

Firstly, is a housekeeping question. I just want to clarify for spirits. Just now we mentioned about the roughly flat volume for domestic period and the mid-teen kind of decline in the Myanmar side, the volume. Was it referring to just the March quarter itself? Or is it a 6-month performance? That's my first question.

So Prapakon, have you listened to the question? Would you respond to that?

Yes, the answer is both, we'll have about mid-teen decline for the 6 months here.

Right. So both the quarter and the half year, the 6 months is -- the performance is similar, like flat and mid-teens, flat for domestic and...

The first quarter declined due to COVID. There was some COVID problem also leading to the election. And the second quarter has to do with the change in political environment, okay?

Right. Understood. That's for Myanmar, right?

Right.

Okay. Got it. So okay -- so I wonder if the domestic one, is it possible that you could kind of break it down for us for the December quarter and the March quarter? Is the volume quite similar or flat year-on-year for both quarters?

It is -- I think it is flat. Our 6-month domestic volume in Thailand is flat. I mentioned that there's a decline in brown and an increase in white. But very low, though. So our overall 6-month number remains about flat as compared to last year.

Okay. Okay. And my second question is on the beer side. I do notice that the overall beer in the March quarter itself in terms of the gross margin, there is a slight decline year-on-year. So just now, I know that the management has elaborated it, but it seems to suggest that our gross margin are pretty robust, but I just wonder what has been causing some of this gross margin decline in the beer. So it looks like that [indiscernible] of margin -- gross margin is actually expanding year-on-year. So I wonder whether that implied that the domestic gross margin is under a little bit of pressure on a year-on-year basis.

You refer to Thailand or Vietnam, please?

Beer.

Oh, beer. Our beer...

Actually, we only have the overall beer -- yes, overall beer, we only have the overall beer gross margin number. So we can only kind of imply what should be the domestic. So it will be good to have more color, yes, on the domestic side.

On the gross margin, Khun Namfon, did you notice that? You know the reason? Just a bit details, anyone? Anyone can...

I think -- Khun Ueychai, I think the main reasons for it is I think -- Pisanu allude to it that our target bottle recycling rates were not hit yet, although we are hitting that direction. So less usage of bottles, plus there's some increase in some raw materials -- raw material costs as well.

Thank you, Michael. Thank you. Yes, the returnable bottle -- the returnable usage percentage will be increased. [Foreign Language] Okay. Go ahead, your last question?

Okay. Okay. Got it. Yes, like last question is on the -- in terms of the debt management. I understand that we refinanced the bonds with some bridging loan. I wonder the bridging loan in terms of the average interest cost, what is it versus the bonds that we paid down? Yes, so it would be great to have some color on that.

Thank you. This is -- Khun Sithichai, can you respond to this question and [indiscernible] can support?

Yes, Sithichai speaking. So our debt view on March this year total THB 42.8 billion. Average cost is about 2.5% per annum. But our bridging loan, 2 year bridging loan like [ EBITDA ] on March this year will be another 2 years. Average cost [indiscernible] that's about 1.7% only.

[Operator Instructions]

I heard that Singapore have a curfew, right? There should be no more questions, go back home. Right, I think that there should be no more questions. Namfon, you can thank the attendants, please.

Serena, then we can close the session. So thank you, everyone, for joining ThaiBev's conference call tonight. If you have more questions, please free to contact IR department at [email protected]. Thank you, and have a good night.

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Thank you, all. Thank you.

Thank you. Thank you, everybody.

Thank you.