Thai Beverage - OCBC Investment 2020-08-18: Spirits Business Remained Relatively Resilient

THAI BEVERAGE PUBLIC CO LTD (SGX:Y92) | SGinvestors.io THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage - Spirits Business Remained Relatively Resilient

  • 9MFY20 business update.
  • Recovery in sales volume as countries exit from lockdowns.
  • Sabeco weighed on beer performance.



Thai Beverage's 9MFY20 revenue fell 7.4% y-o-y while EBITDA rose 2.2% y-o-y

  • Thai Beverage (SGX:Y92)’s 9MFY20 revenue fell 7.4% y-o-y to THB 190.1b while EBITDA rose 2.2% y-o-y to THB 32.9b, driven by improvements in the Spirits and Non-alcoholic beverage’s EBITDA. Sales volume was impacted by the temporary ban on alcoholic beverage sales in Thailand and lockdowns in Thailand and Vietnam in Apr and May but has recovered gradually since the lockdown and ban were lifted in May/June.


Sales volume was impacted by lockdowns

  • In terms of segment performances, Spirits’ sales revenue fell 0.5% y-o-y to THB 88.5b on the back of weaker sales volume (-2.5% y-o-y) while EBITDA grew 4.9% y-o-y to THB21.6b in 9MFY20 due to lower selling expenses in Thailand and Myanmar.
  • For Beer, 9MFY20 revenue fell 14.2% y-o-y to THB79.3b due to weak sales volume (-15.5% y-o-y) while EBITDA was down 9.3% y-o-y to THB 8.8b. The decline in sales volume was largely attributable to lower Sabeco sales. Excluding the impact of Sabeco, total sales volume for Beer would have declined marginally y-o-y despite the temporary ban on alcoholic beverage sales in Thailand.
  • The non-alcoholic beverage segment’s (NAB) 9MFY20 revenue was up 0.5% y-o-y to THB 12.5b while EBITDA surged 301.6% y-o-y to THB1.7b due to continued cost management initiatives.
  • Separately, the Food business posted a 14.7% y-o-y decline in revenue to THB 9.9b while EBITDA declined 46.9% y-o-y to THB 751m, due to bans on dine-in at restaurants and other food outlets in Thailand in Apr and May.


Valuations undemanding






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2020-08-18
SGX Stock Analyst Report BUY MAINTAIN BUY 0.75 UP 0.710



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