- Thai Beverage reported soft results but in-line with our estimates. Revenue was marginally down by 0.6% y-o-y to THB85.4b in 2QFY25, driven by weaker sales of beer (- 2.4% y-o-y), NAB (-1.9% y-o-y) and food business (-0.9% y-o-y), partly offset by stronger sales from the spirits business (+2.1% y-o-y).
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- An interim dividend per share of THB0.15 was declared, same as last year. See Thai Beverage's dividends payout dates.
Modest recovery in spirits’ sales volume in 2QFY25.
- The revenue of the spirit business rose 2.1% y-o-y due to a 2.6% y-o-y increase in sales volume, but EBITDA fell 5.4% y-o-y in 2QFY25, mainly due to higher raw material and marketing costs.
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Beer sales strong in Thailand but weak in Vietnam.
- Beers’ revenue and EBITDA fell 2.4% and 3.1% y-o-y, dragged by weaker consumption in overseas market. Beer sales in Thailand was strong, supported by the tourism rebound, but was weaker in Vietnam.
- Management remains focused on controlling costs and maintaining profitability of the beer business.
- We expect continued weakness in Vietnam in 2HFY25 due to softer economic growth outlook, though Sabeco could benefit from consumer trade-down trends.
Lower EBITDA from NAB and food.
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