- Thai Beverage (SGX:Y92)’s 2QFY23 (Jan to Mar 2023) revenue increased by 2.4% y-o-y to THB67.4b, driven by higher sales of spirits (+7.8% y-o-y), NAB (+14.6% y-o-y) and food business (+19.7% y-o-y), partly offset lower contribution from beer (-7.3% y-o-y).
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- An interim dividend per share of THB0.15 was declared, same as last year. See Thai Beverage's dividend date.
Favourable product mix towards brown spirits
- Despite a 0.4% y-o-y decline in sales volume in 2QFY23, revenue and EBITDA of spirits rose 7.8% and 8.9% y-o-y respectively, driven by higher product mix of brown spirits (higher priced) compared to white spirits, together with price adjustments.
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Beer business was weak; NAB and food business continued to recover
- Revenue of beer fell 7.3% y-o-y during the quarter, mainly attributable to lower sales volume (-10.1% y-o-y). The decline in beer volume was largely led by Sabeco as consumer sentiment and economic conditions were weak in Vietnam.
- Management shared that the sales volume of beer in Thailand was volatile but was largely positive. Thai Beverage gained market shares in Thailand due to enhanced distribution channels and penetration efforts.
- EBITDA and margin fell 16.1% and 1.4 percentage points (ppt) respectively for beer, due to an increase in brand investment, marketing activities and raw material/packaging costs. Thai Beverage noted that it might be hard to further increase its product selling prices after a few rounds of price adjustments for beer.
- For Thai Beverage’s NAB business, revenue and EBITDA rose 14.6% and 20.8% respectively in 2QFY23, thanks to higher sales volume (+8.4% y-o-y) and production efficiency. Food business’ revenue grew 19.7% y-o-y but EBITDA fell 5.3% y-o-y due to higher operating expenses.
Beneficiary of reopening
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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2023-05-16
Previous report by OCBC:
2023-02-13 Thai Beverage - Reopening Drove Volume Recovery.
Price targets by 3 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
