BTS Reports Slight Revenue Growth for FY2024 Results amid Huge Impairment in Kerry

BTS Group Holdings Public Company Limited (SET: BTS) has announced its consolidated financial statement through the Stock Exchange of Thailand as follows;

BTS reported a total revenue of THB 24,387 million, increasing 1.0% YoY or THB 248 million. The increase was mostly attributed to (i) higher interest income of THB 1,094 million and (ii) an increase in service income and sales of THB 726 million, mainly driven by Advertising revenue growth under MIX business, the initial recognition of farebox revenue of Yellow and Pink Lines coupled with a resilient revenue from O&M contracts under MOVE business.

However, the increased revenue was partially offset by lower revenue from contracting works of THB 904 million, mainly from Yellow and Pink Lines projects after the commencement of their commercial operations.

Meanwhile, total reported (consolidated) expenses increased 24.7% YoY or THB 4,333 million to THB 21,843 million. This was largely from the one-time recorded loss from impairment and disposal of investment in Kerry Express (Thailand) PCL (KEX) of THB 4,363 million.

Net loss was THB 5,241 million, primarily from (i) the impact of the one-time recorded loss from impairment and disposal of investment in KEX, (ii) a record of share of loss from investments in associates (largely from a recognition of share of loss from Rabbit Holdings1, coupled with a higher share of loss from investment in KEX) and (iii) higher finance costs.

However, if excluding non-recurring items (which covers aforesaid impairments and disposal loss from sales of KEX), the Company reported the Adjusted Core Net Profit at THB 275 million and Net Profit Margin (before non-recurring items after NCI) was 1.2%.

In addition, the company announced an omission of dividend payment for its operating period from 01-Apr-2023 to 31-Mar-2024.


CGS International Securities (Thailand) wrote in a note that the net loss of THB 174 million in 4QFY3/24 and THB5.2 billion for FY24 was wider than expected due to larger than expected impairments of its associates (KEX, JMART).

However, recurring net profit of THB224 million in 4QFY3/24 was higher than its forecast by THB285 million mainly due to higher than expected O&M revenue and interest income.

The brokerage firm warned that BTS’s credit rating was downgraded by Tris from A- to BBB+ which could lead to higher interest cost in the coming quarters.

While BTS’s net loss is likely to trend down due to improved profitability prospects for its subsidiary (VGI after having sold its entire stakes in Kerry Thailand) and associates (ie JMART), CGSI believed the company still lacks a long term profit growth driver.

Currently, CGSI maintains its Hold rating on BTS with a target price of THB6.00 per share. The broker stated that it will provide a further update after its analyst meeting next Thursday (6 June).