Thai Beverage (SGX:Y92)’s FY23 (Oct 2022 to Sep 2023) revenue grew 2% y-o-y, while PATMI declined 9% y-o-y. We deem this as below expectations as PATMI formed 92%/93% of our/Bloomberg consensus’ forecast.
These two factors overshadowed strength in other business segments in Thailand, which continued to report positive revenue growth in 4QFY23.
Resilient spirits sales
Sales volume for the spirits segment grew ~3% y-o-y in 4QFY23, narrowing the full-year volume decline to -2% y-o-y (from -3.5% y-o-y in 9M23; 1HFY23 suffered from a high base effect due to trade-inventory loading ahead of price hikes in 1HFY22).
- Read this at SGinvestors.io -
Spirits segment EBITDA margin was flattish (+0.1% points y-o-y) in 4QFY23. Thai Beverage is currently working on price hikes of smaller bottle SKUs for brown spirits.
Thai Beverage also disclosed that it acquired two international spirits distilleries (Cardrona Distillery in New Zealand, Larsen in France) in Sep to strengthen its premium spirits offerings in the international market for a cash consideration of ~US$80m.
Beer sales could remain lacklustre; offset by lower input costs
Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB. Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Use Trust Referral Code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank savings account this December: ✨Earn up to S$1,000 cashback reward 🎟 and win an XPENG G6 SUV 🚙 !
