Thai Beverage - OCBC Investment 2024-11-25: Signs Of Improvement For A Better FY25

• Thai Beverage completed its share swap transaction with TCC Assets Limited to fully divest its stake in FPL while increasing its stake in F&N from 28.31% to 69.64% on 20 Sep 2024.
• - Read this at SGinvestors.io -

FY24 PATMI was down 0.8% y-o-y

• Thai Beverage’s FY24 revenue was up 2.2% y-o-y to THB340.3b while PATMI fell marginally by 0.8% y-o-y to THB27.2b.
• A final dividend of THB0.47 per share (vs THB0.45 per share last year) was declared, bringing the total Thai Beverage's dividends for FY24 to THB0.62 per share (+3.3 y-o-y).

Beer & non-alcoholic beverages (NAB) segments were strong

• - Read this at SGinvestors.io -
• By segment, sales revenue of spirits rose slightly by 0.8% y-o-y to THB120.7b, thanks to higher consumption of white spirits in Thailand, and continuous growth in the Myanmar market. PATMI fell 5.8% y-o-y to THB22.0b in FY24, weighed down by higher brand investment and marketing activities, raw material costs, finance cost and income tax expense.
• For beer, its revenue grew 2.4% y-o-y to THB126.3b, due to the rebound in tourism and increased consumption from warmer weather in Thailand. PATMI increased 10.1% y-o-y to THB2.7b in FY24, thanks to lower raw material prices and improved operational efficiency.
• For NAB, its revenue was up 4.2% y-o-y to THB65.8b due to higher sales volume across all categories. Despite higher investment in brand and marketing activities, NAB’s PATMI increased 21.7% y-o-y to THB1.5b, driven by lower packaging costs, favourable commodity price and enhanced production efficiency.
• Separately, the sales revenue of the food business increased 5.5% y-o-y to THB22.3b, driven by the opening of new stores. Despite higher sales revenue, PATMI declined 72.5% to THB64m, dragged by higher raw material cost, an increase in operating expenses to support sales growth and a decrease in one-off fair value gain on remeasurement of investment in Cocoaland in FY23.

Hopefully of a better FY25

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-11-25 SGinvestors.io

---