- Thai Beverage released its 1QFY24 business update whereby overall revenue fell 5.9% y-o-y, dragged by the beer segment. However, 1QFY24 EBITDA increased 1.9% y-o-y on more efficient A&P spending along with lower raw material costs.
- - Read this at SGinvestors.io -
- In our view, Thai Beverage's share price is trading at an attractive -2 standard deviation to its mean P/E. Maintain BUY with the same SOTP-based target price of S$0.70.
Muted 1QFY24 in line with expectations.
- Thai Beverage (SGX:Y92) provided its 1QFY24 business update whereby overall revenue fell 5.9% y-o-y while overall EBITDA eked out a slight gain of 1.9% y-o-y, forming 28% and 34% of our full-year forecasts respectively.
- - Read this at SGinvestors.io -
- However, 1QFY24 overall EBITDA was supported by better margins across the spirits, beer and non-alcoholic beverages (NAB) segments, driven by better cost management and efficient advertising and promotional (A&P) spending. As a result, 1QFY24 overall EBITDA margins grew 1.4ppt y-o-y.
- On a q-o-q basis, 1QFY24 overall revenue (+20.4% q-o-q) and EBITDA (+32.4% q-o-q) were higher sequentially, given that 1Q is Thai Beverage’s seasonally strongest quarter.
Robust balance sheet from continued deleveraging.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Llelleythan Tan UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-02-15
Previous report by UOB:
2024-01-05 Thai Beverage - No Direct Impact From Announced Tax Changes But Awaiting Further Clarity.
Price targets by 3 other brokers at Thai Beverage Target Prices.
Listing of research reports at Thai Beverage Analyst Reports.
Relevant links:
Thai Beverage Share Price History,
Thai Beverage Announcements,
Thai Beverage Dividends & Corporate Actions,
Thai Beverage News Articles
