These are the key takeaways from Thai Beverage’s (ThaiBev) 4Q14 results briefing.

Record FY14 Dividend, Future Payout Performance Dependent – ThaiBev paid out 71% of FY14 net profit as dividend (FY13: 58%). Management’s policy is to distribute dividend not less than 50% of net profit. It shared that FY14’s good performance led to the higher than normal payout. Moving forward, the amount distributed would be performance dependent.

Stellar Growth In Beer Export Sales – ThaiBev’s beer segment saw a 30% increase in export sales volume. The current export-to-local sales ratio is 15:85. This ratio is expected to maintain. No margin contraction is expected despite stronger export sales.

Thailand 100PLUS Arrangement – ThaiBev buys the concentrate from Fraser and Neave, Ltd (FNN). For the first two to three years, FNN would not charge ThaiBev a royalty fee for the drink. Marketing and promotion expenses will be split 50:50 between the two entities.

New Markets – Management noted positive initial signs for 100PLUS sales in Thailand. Management intends to launch the Est brand in Malaysia in 2015.

Investment Actions

No stock rating or price target provided, as we do not have coverage on ThaiBev.

Source: Phillip Securities Research - 3 Mar 2015