Thai Beverage - UOB Kay Hian 2024-08-12: 3QFY24 Stable Performance As Beer Outperforms

• Thai Beverage (SGX:Y92) reported slightly higher 9MFY24 revenue (+0.5% y-o-y) and EBITDA (+2.2% y-o-y), forming 77% and 80% of our full-year forecasts respectively.
• The y-o-y growths were largely driven by increased contributions from the beer, food and non-alcoholic beverages (NAB) segments, offset by the spirits segment. The group remains on track to grow its FY24 revenue by 1-2% y-o-y.
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Soft 3QFY24 as margins fell.

• Although Thai Beverage's 3QFY24 revenue (+2.5% y-o-y) was slightly higher y-o-y, EBITDA softened (-3.2% y-o-y) as most business segments saw lower margins.
  • The higher 3QFY24 revenue was driven by the beer (+8.5% y-o-y), NAB (+4.5% y-o-y) and food (+4.8% y-o-y) segments, but dragged by the spirits segment (-4.3% y-o-y) as sales volumes fell 6.1% y-o-y on the back of slower economic activity.
  • - Read this at SGinvestors.io -
• As a result, 3QFY24 EBITDA margins dropped to 16.9% (-1.0ppt y-o-y).

Spirits segment: Underperformer.

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Llelleythan Tan UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-08-12 SGinvestors.io

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