Thai Beverage - UOB Kay Hian 2024-02-15: 1QFY24 In Line As Margins Improve

Thai Beverage - 1QFY24 In Line As Margins Improve

Thai Beverage (SGX:Y92) | SGinvestors.ioThai Beverage (SGX:Y92)
  • 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.
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  • 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.
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  • 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.

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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 @

Llelleythan Tan UOB Kay Hian Research | Heidi Mo UOB Kay Hian | 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


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