Thai Beverage released its FY14 results yesterday evening, which was generally in line with the street’s expectations. FY14 revenue was up 4% to THB162.0m, coming in 1% higher than our forecast. This was driven by increased sales in its spirits, beer and food business. FY14 PATMI rose 13% to THB21.7m, but this was about 4.1% lower than consensus estimates. Its bottomline was hit by a net loss in the non-alcoholic beverage segment due to higher A&P expenses as well as lower net profit from its food business.

Revenue for its international business continued to see growth at 24%, on the back of its Scotch Whisky and Beer segments. A record dividend of THB0.46 was declared, with total DPS at THB0.61 (FY13: THB0.44), giving a dividend yield of ~3.4%.

We maintain our HOLD rating while our fair value estimate of S$0.77 is under review pending further information from management.

Source: OCBC Research - 27 Feb 2015