Thai Beverage - UOB Kay Hian 2023-02-13: Muted 1QFY23 Results As Margins Compress

• Thai Beverage released its 1QFY23 business update whereby revenue grew 4.9% y-o-y, driven by most business segments. However, EBITDA fell 7.7% y-o-y as the group ramped up marketing activities and faced general inflationary cost push. The spirits segment had lower y-o-y sales volumes but was supported by a better product mix.
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• Maintain BUY on Thai Beverage with a lower SOTP-based target price of S$0.80.

ThaiBev's muted 1QFY23 results in line with expectations.

• Thai Beverage (SGX:Y92) provided its 1QFY23 (Oct-Dec 2022) business update whereby overall revenue grew 4.9% y-o-y while EBITDA fell 7.7% y-o-y, forming 28% and 30% of our full-year forecasts and in line with expectations. See Thai Beverage's announcement dated 10 Feb 2023. Excluding the spirits segment which saw revenue falling 6.4% y-o-y, the increase in overall revenue was driven by most segments due to Thailand’s economic recovery and the return of tourists to the kingdom.
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• On a q-o-q basis, 1QFY23 overall revenue (+25.4% q-o-q) and EBITDA (+28.9% q-o-q) were higher, given that 1QFY23 is Thai Beverage’s seasonally strongest quarter.

Improving balance sheet from continued deleveraging.

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Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-02-13 SGinvestors.io

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