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Thai Beverage - OCBC Investment 2022-05-19: Beneficiary Of Reopening

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

Thai Beverage - Beneficiary Of Reopening

  • Thai Beverage's EBITDA and PATMI improved 7.5% and 13.3% y-o-y in 1HFY22 (financial half-year to end-Mar 2022)
  • Performance boosted by easing COVID-19 restrictions
  • An interim dividend of 0.15 Thai Baht was declared



Results beat expectations on stronger recovery

  • Thai Beverage (SGX:Y92)’s 1HFY22 revenue rose 8.9% y-o-y to THB 142.9b, driven by stronger performances across its business segments, thanks to relaxation of COVID-19 restrictions.
  • Total sales volume grew 6.4% y-o-y in 1HFY22. EBITDA and PATMI improved 7.5% y-o-y and 13.3% y-o-y to THB 28.2b and THB 16.3b, respectively. However, ETITDA margin was marginally lower by 0.2 percentage points to 19.8%.
  • An interim dividend of 0.15 Thai Baht per share was declared, same as last year.


Expecting lower molasses price ahead

  • Costs such as raw material and packaging increased in 1HFY22 but Thai Beverage managed to mitigate some of the costs through improvement in operation efficiency and price adjustments. EBITDA increased y-o-y for all Thai Beverage’s business segments, with the exception of the spirits business (-2.6% y-o-y in 1HFY22).
  • We note that Thai Beverage increased the price of white spirits in Nov 2021 and Feb 2022 by 4~6% to mitigate the impact of cost inflation. Due to price adjustment in 1HFY22, the product mix had shifted to white spirits than brown spirits due to front loading and stock-up. Management expects the price of molasses which is a key raw material for spirits to trend lower due to higher sugarcane crop.

Recovery driven by reopening






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2022-05-19
SGX Stock Analyst Report BUY MAINTAIN BUY 0.88 SAME 0.88



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