- We continue to like Thai Beverage for its strong market leadership in Thailand and Vietnam, and as a beneficiary to Thailand’s economic recovery and the return of tourists post COVID-19 in Vietnam. We see earnings growth driven by better sales volume as consumption recovers.
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Thai Beverage's 1HFY23 earnings a tad below.
- Thai Beverage (SGX:Y92)'s 1HFY23 (Oct 2022 to Mar 2023) earnings came in at THB16bn (flat y-o-y) on the back of THB148bn revenue (+4% y-o-y).
- Revenue growth stemmed from beer (THB64bn, +4% y-o-y, ASP increase), non-alcoholic beverages (THB9bn, +15% y-o-y, sales volume improvement), and food (THB9bn, +21.8% y-o-y, resumption of dine-in) segments. The spirits segment was flat y-o-y (THB65bn) as the sales volume decline was offset by the price adjustment and higher brown spirits sales mix.
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- Operating margin declined 1.6ppts to 13.3% from higher brand investment and marketing activities, mainly from the beer segment.
Trim FY23F-25F earnings forecast by 5% each.
- Read more at SGinvestors.io.
