Within the food and beverage (F&B) business, there are many smaller sub-categories that we can look at. In this week’s edition of our 4 Stocks This Week column, we look at four beverage-focused companies listed in Singapore.
There are two main classifications for beverages – alcoholic and non-alcoholic. Even within the beverage category, companies could be looked at as consumer staples or consumer discretionary.
Here are the four stocks: Del Monte Pacific, F&N, ThaiBev and Yeo Hiap Seng.
Del Monte Pacific (SGX:D03)
Dual listed in Philippines and Singapore, Del Monte Pacific is a global F&B company, with sales in the Americas (75%), Philippines (15%), Asia ex-Philippines (8%) and Europe (2%).
It owns four main brands – Del Monte (vegetables, fruits and tomatoes), S&W (packaged fruits, vegetables, tomatoes, beans and sauces), Catadina (tomato products) and College Inn (packaged broths and stocks).
The group classifies four main product segments – packaged fruit and vegetable, beverage, culinary and fresh fruit and others. Within its beverage segment, its sells mainly 1) pineapple juice in cans, juice drinks in various flavours in cans, tetra and PET packaging; and 3) pineapple juice concentrate. This segment contributed 7% to its 2018 revenue.
Del Monte Pacific has a market capitalization of $726.9 million, and is currently trading a price-to-book value of 0.3. Since the start of 2019, its share price has dipped close to 7.8% to $0.118.
F&N (SGX:F99)
F&N, or Fraser and Neave, has two main businesses – F&B and publishing and printing. In 2012, it was also involved in a takeover battle from Thai tycoon Charoen Sirivadhanabhakdi, who is the founder of ThaiBev, which carved out its property-related business from the company.
Today, F&N still owns many beverage brands that we are familiar with. Under its beverages segment, this includes: 100PLUS, F&N NUTRISOY; F&N SPARKLING DRINKS; F&N ICE MOUNTAIN; F&N NUTRIWELL; F&N SEASONS; and F&N FRUITREE. Under its dairy segment, this includes: F&N MAGNOLIA; TEA POT; GOLD COIN; BLUE COW; FARMHOUSE; F&N DAISY; and F&N FRUIT TREE FRESH. It also has a related ice cream and lifestyle food products segment.
With a market capitalisation of $2.5 billion, F&N trades at a share price of $1.72, a 1.2% increase since the start of the year. It is currently trading at a price-to-book value of 0.9, and has a dividend yield of 2.6%.
ThaiBev (SGX:Y92)
Based in Thailand, ThaiBev is engaged in the production and distribution of alcoholic and non-alcoholic beverages, as well as the operation of Japanese restaurants. Its beverage business includes 1) spirits, 2) beer, 3) non-alcoholic beverages and 4) alcoholic beverages.
ThaiBev acquired F&N in 2012, increasing its footprint in the beverage industry. Today, ThaiBev has a market capitalization of $21.0 billion.
In 2018, ThaiBev reported a revenue of $229.7 million. On the back of this, its share price has soared 38.0%. ThaiBev is currently trading a price-to-book value of 3.8, and is paying a distribution yield of 2.0%.
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Yeo Hiap Seng (SGX:Y03)
Yeo Hiap Seng has three main businesses – beverages, food and agency brands. Under its beverage segment, its owns the popular Yeo’s brand, as well as H-TWO-O, Pink Dolphin, Justea, Juscool, Oceanic, pH Infinity, Purete and Sparkle Water. Under its agency brands business, it also distributes the Red Bull drink.
Trading at a share price of $0.915, Yeo Hiap Seng has a market capitalisation of nearly $530.1 million. Since the beginning of 2019, its share price has climbed 5.8%. Based on this, it has a dividend yield of 2.2%, and is currently trading at a price-to-book value of 0.8.
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