Thai Beverage - RHB Invest 2023-06-22: Anticipating Consumption Recovery; Keep BUY

• 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.
• - Read this at SGinvestors.io -

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.
• - Read this at SGinvestors.io -
• 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.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2023-06-22 SGinvestors.io

---