Thai Beverage - DBS Research 2022-11-29: A Good Ending To FY22

• Thai Beverage's reported stronger 4QFY22 performances, boosted by the recovery of economic activities.
• Made more price adjustments in Oct 2022.
• A total dividend of 0.60 THB per share was declared (+20% y-o-y).

Thai Beverage's FY22 results beat expectations

• - Read this at SGinvestors.io -
• On a full year basis, EBITDA (including associated companies) improved 15.7% y-o-y to THB53.9b while PATMI rose 22.2% y-o-y to THB30.1b, partially offset by weaker performance from the spirits segment.
• The result beat our expectations with PATMI exceeding our forecasts by 5% on lower-than-expected operating expenses.
• - Read this at SGinvestors.io -

Spirits business was weaker

• Demand for spirits was impacted by lower government income support and softer economy in Thailand. Sales revenue of spirits rose marginally by 1% y-o-y, thanks to higher average selling price as Thai Beverage raised prices to minimize the impact of inflationary pressure during the year while volume stayed flat. EBITDA and net profit fell 2.3% and 1.1% y-o-y, weighed down by higher raw materials and packaging costs, as well as weaker MMK.
• On the other hand, Thai Beverage reported stronger growth in beer, NAB and food segments with improvement in both topline and bottom line.

Fair value estimate of S$0.81 for Thai Beverage

• Read more at SGinvestors.io.

Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2022-11-29 SGinvestors.io

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