Thai Beverage - UOB Kay Hian 2023-05-15: 1HFY23 Results Slightly Above Expectations, Supported By Brown Spirits

• Thai Beverage's announced 1HFY23 core PATMI of Bt16.1b (-1.2% y-o-y), slightly above our expectations. The better-than-expected performance was largely due to a smaller-than-expected drop in margins. The ongoing recovery in brown spirits has led to a positive 1HFY23 EBITDA growth.
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Stable 1HFY23 results despite headwinds.

• For 1HFY23, Thai Beverage (SGX:Y92) posted stable overall revenue growth of 3.7% y-o-y, forming 53.6% of our full-year forecasts and in line with expectations.
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• 1HFY23 PATMI dropped slightly by 1.2% y-o-y and formed 61.4% of our full-year forecasts, slightly above our expectations. The better-than-expected performance was due to lower contributions to non-controlling interests (NCI) and lower interest expense.
• The drop in 1HFY23 PATMI was in line with EBITDA as margins compress. 1HFY23 core EBITDA (-1.4ppt y-o-y) and PATMI (- 1.3ppt y-o-y) margins fell.
• Thai Beverage declared a similar interim dividend of Bt0.15 per share (1HFY22: Bt0.15), representing a 1HFY23 earnings payout ratio of 23.44% and annualised yield of ~1%. See Thai Beverage's dividend date.

Spirits: Margin expansion.

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Llelleythan Tan Yi Rong UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-05-15 SGinvestors.io

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