Thai Beverage - OCBC Investment 2021-08-18: Helped By Effective Cost-Control Measures

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

Thai Beverage - Helped By Effective Cost-Control Measures

  • Thai Beverage's 9MFY21 EBITDA rose 11.5% y-o-y.
  • Margin improved due to effective cost-control measures.
  • Spirits remained resilient.



Thai Beverage's 9MFY21 business update

  • Thai Beverage (SGX:Y92)’s 9MFY21 revenue increased by 1.1% y-o-y to THB192.1b due to higher sales from Beer and Spirits, but partially offset by lower sales revenue from Non-alcoholic and Food segments. Despite a marginal revenue growth in 9MFY21, EBITDA rose 11.5% to THB36.6b due to prudent cost control measures which saw EBITDA margin improving to 19.1% (+1.8 ppt).


Spirits remained resilient with a 4.2% YoY increase in sales volume

  • Despite the impact of COVID-19, Spirits remained resilient due to its off-premise consumption nature, strong product portfolio and distribution network. Its 9MFY21 revenue grew 3.6% y-o-y to THB91.6b while EBITDA was up 9.5% y-o-y to THB23.6b, driven by higher sales volume (+4.2%) and lower selling expenses.
  • For Beer, 9MFY21 revenue and EBITDA grew 1.2% and 20.4% y-o-y on effective cost control measures. Total sales volume for Beer, however, fell 1.1% y-o-y due to weaker performance from SABECO. Stripping off the impact of SABECO, sales volume would have increased.
  • For the non-alcoholic beverage segment (NAB), revenue and EBITDA fell 6.4% and 4.6% y-o-y due to lower sales volume (-8.6% y-o-y).
  • Separately, the Food business was impacted by the Thai government’s restrictions on dining-in at restaurants and other food outlets. As a result, revenue declined 12.9% y-o-y while EBITDA rose 2.9% y-o-y.


Valuations undemanding






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2021-08-18
SGX Stock Analyst Report BUY MAINTAIN BUY 0.910 SAME 0.910



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