Thai Beverage - OCBC Investment 2023-11-28: Beer Business Was A Drag

• Thai Beverage (SGX:Y92)'s FY23 (Oct 2022 to Sep 2023) revenue was up 2.5% y-o-y to THB279.1b while PATMI fell 8.9% y-o-y to THB27.4b.

A weak ending to FY23 (financial year ended Sep 2023)

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• A final dividend of THB0.45 per share (same as last year) was declared, bringing the total dividend for FY23 to THB0.60 per share (flat y-o-y). See Thai Beverage's dividend dates.

Spirits were resilient; beer business remained weak

• Sales revenue of spirits rose 3.1% y-o-y to THB119.8b while net profit reached a record high of THB22.4b in FY23, thanks to higher average selling price, favourable change in the product mix in Thailand, as well as higher consumption of the brown spirits.
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• Separately, the sales revenue of the food business increased 16% y-o-y to THB19.1b, on the back of increase in dine-in traffic at restaurants. Despite a higher sales revenue, net profit declined 85.7% to THB64m, mainly attributable to higher operating expenses, as Thai Beverage enhanced its efforts to improve brand visibility and opened new stores.
• On the other hand, the NAB segment revenue and net profit rose 12.4% and 15.2% y-o-y to THB19.6b and THB675m respectively, driven by higher sales volume and improved production efficiency.

Fair value estimate of S$0.76

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2023-11-28 SGinvestors.io

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