Thai Beverage (SGX:Y92)’s 2QFY24 revenue increased by 6.3% y-o-y to THB71.6b, driven by stronger sales of beer (+12.8% y-o-y), spirits (+0.6% y-o-y), non-alcoholic beverages (NAB) (+8.6% y-o-y) and food business (+4.5% y-o-y).
2QFY24 core operation improved but PATMI was dragged by weak associate income
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PATMI fell 4.9% y-o-y to THB6.9b, dragged by weak associate income.
An interim dividend per share of THB0.15 was declared, same as last year.
Green shoots of recovery for the beer segment
Beer business improved in 2QFY24, with revenue and EBITDA growing 12.8% and 12.9% y-o-y respectively. Management sees positive growth momentum in its beer segment as beer sales turned positive in Vietnam during Jan-Mar 2024 and ThaiBev has gained beer market share in Thailand.
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Spirits sales were flattish but margin expanded
Spirits’ revenue and EBITDA were up +0.6% and +5.7% y-o-y, respectively in 2QFY24 while EBITDA margin expanded to 25.8% (+1.2 percentage points (ppt) y-o-y). Brown spirits sales volume declined slightly in 1HFY24 due to a weak economy while the white spirits consumption remained relatively flattish y-o-y. The spirits business posted higher sales volume and profit y-o-y in Myanmar.
Management sees the recovery of the tourism sector in Thailand and the upcoming government stimulus measures as supportive for its spirits business.
Lower associate contributions, mainly due to two associates in Vietnam
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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