- Thai Beverage (SGX:Y92) reported sales of Bt272bn and net profit of Bt30.1bn, up by 13.2%/ 22.2% y-o-y, beating our FY22 top-line and bottom-line forecasts of Bt258bn and Bt27bn by 5.6% and 11.8%, respectively.
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Spirits business impacted by restrictions and subdued consumer confidence in Thailand.
- Spirits’ net sales was up 1% while net profit declined by 1.2% to Bt21.9bn. FY22 net sales only saw a small increase due to subdued consumer confidence and domestic conditions in Thailand. We believe brown spirits sales have yet to pick up with the reopening of night spots only towards end of the financial year.
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- While Spirits margins retreated in FY22, we expect to see some marginal tick up in FY23F on the back of lower cost of molasses given the higher sugar cane crop, shift in sales mix in favour of brown spirits along with the reopening, as well as operating leverage with higher sales volume. We are penciling in EBITDA margin for Spirits to tick back up slightly to 24.6% in FY23F.
Beer sales volume benefitted from reopening, lifted mainly by Vietnam, along with price increase effected in both Vietnam and Thailand beer.
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