Thai Beverage 1HFY23 Earnings Preview - UOB Kay Hian 2023-05-11: Beer Segment Facing Headwinds

Thai Beverage 1HFY23 Earnings Preview - Beer Segment Facing Headwinds

Published:
Thai Beverage (SGX:Y92) | SGinvestors.ioThai Beverage (SGX:Y92)
  • Thai Beverage’s 54%-owned Vietnamese beer-subsidiary, Sabeco, reported its 1Q23 results with revenue and PATMI dropping sharply, dragged by front-loading in 4Q22 and a gloomy economic outlook.
  • Despite higher tourist arrivals to Thailand, we reckon there is downside to our current beer segment estimates. Our estimates for the other segments remain unchanged.
  • - Read this at SGinvestors.io -

Negative read-through from SABECO's financial.

  • Thai Beverage (SGX:Y92)’s 54%-owned Vietnamese beer-subsidiary, Sabeco, reported its 1Q23 results with revenue (-15.0% y-o-y) and PATMI (-17.4% y-o-y) falling. It was noted that a post-holiday slowdown, strict drink driving laws and global economic uncertainty led to slower consumption.
  • - Read this at SGinvestors.io -
  • In our view, given that Sabeco has historically been a reliable leading indicator and contributes around 55-60% of beer revenue, the slowdown in Vietnam’s beer consumption is expected to drag Thai Beverage's beer segment for 2QFY23.
  • Along with fierce competition in Thailand's domestic beer market, we reckon that there are earnings downsides to our current estimates for Thai Beverage and expect 2QFY23 beer revenue/EBITDA to fall y-o-y.

Improved tourist arrivals.

  • Read more at SGinvestors.io.



Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.



Llelleythan Tan Yi Rong UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-05-11



Read also UOB's most recent report:
2025-02-17 Thai Beverage's Mixed 1QFY25 Results In Line - Beer & NAB Outperform; Spirits Underperform.

Previous report by UOB:
2024-11-22 Thai Beverage - Stable FY24 Performance, Positive FY25 Outlook..

Price targets by other brokers at Thai Beverage Target Prices.

Listing of research reports at Thai Beverage Analyst Reports.

Relevant links:
Thai Beverage Share Price History,
Thai Beverage Announcements,
Thai Beverage Dividend Payout Dates & Corporate Actions,
Thai Beverage News






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