Thai Beverage PLC’s (ThaiBev) FY15 results met our expectations. Revenue was up 6.2% to THB172.0b, meeting 101% of FY15F estimate. This was underpinned by growth in sales of Spirits (+1.3%), Beer (+22.5%) and Nonalcoholic Beverages (+4.5%), but Food sales declined marginally by 0.4%. PATMI of THB26.5b formed 98% of our full year estimate, which included the THB3.8b gain from disposal of Myanmar Brewery Limited in 3Q.

Net profit from continuing operations rose 5.5% to THB22.6b, on the back of 207% growth in net profit for Beer and 40.5% for F&N/FCL. Notably, Beer segment enjoyed higher sales volume, price, lower raw material price and higher utilization rate, offset by an increase in staff costs and promotional expenses.

Pending more information from the analyst briefing, we are keeping our BUY rating, with fair value estimate of S$0.83 unchanged for now. Separately, the group is considering a change in ThaiBev’s fiscal year-end from Dec 31st to Sep 30th, subject to approvals

Source: OCBC Research - 29 Feb 2016