- Thai Beverage faces stronger competition for its spirits business due to the upcoming regulatory changes but is expected to benefit from lower molasses costs. The domestic beer segment is set to post better margins and has maintained its market share leadership. However, Sabeco continues to face ongoing headwinds from stringent drink-driving laws and higher excise taxes.
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Spirits: Growing competition.
- Thai Beverage’s spirits segment faces growing competition, specifically for its white spirits subsegment as more competitors enter the domestic market. Furthermore, pending confirmation from Thailand’s Senate, the upcoming changes to alcohol regulations in Thailand would further increase domestic competition.
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- Management also noted that the group has been procuring molasses at roughly 20% better yields y-o-y, implying that lower raw material costs from this crop will likely flow through in 1HFY26 and expand margins. Sales volume for the brown spirits segment remains resilient
Spirits: Recovery pushed back to 4QFY25.
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