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

Thai Beverage 1HFY23 Earnings Preview - Beer Segment Facing Headwinds

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.
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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.
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  • 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.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

Llelleythan Tan Yi Rong UOB Kay Hian Research | 2023-05-11

Read also UOB's most recent report:
2024-06-24 Thai Beverage - Highlights From 2024 Annual Information Meeting.

Previous report by UOB:
2024-02-15 Thai Beverage - 1QFY24 In Line As Margins Improve.

Price targets by 4 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 Dividends & Corporate Actions,
Thai Beverage News Articles


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