Thai Beverage: 1QFY17 results within expectations
Author: kimeng | Publish date: Wed, 15 Feb 2017, 09:49 AM
Thai Beverage PLC’s (ThaiBev) 1QFY17 results were broadly within our expectations amid a weaker consumer environment and promotional activities were postponed due to the mourning period in Thailand. Keep in mind that 4QCY16 is typically the peak season.
Revenue was down 8% YoY to THB46.8b, forming 24% of our FY17F estimate, as sales declined across the segments – Spirits (-11%), Beer (-4.6%), Non-alcoholic Beverages (-1.3%) and Food (-1.0%).
Spirits’ net profit was also down 8% to THB5.1b as trade activities did not resume right after the first 30 days suspension of entertainment activities, which was encouraged by the government.
Nonetheless, on a broader picture, lower selling and administrative expenses, higher net profit of beer business and share of profit from associates helped PATMI increase 28% to THB7.7b to constitute 29% of our full year estimate.
Pending more information from the analyst briefing this evening, we are keeping our BUY rating, with fair value estimate of S$1.01 unchanged for now.
Source: OCBC Research - 15 Feb 2017
More articles on SGX Stocks and Warrants >>
Be the first to like this.