Thai Beverage’s FY16 results met expectations as revenue of THB139.2b and PATMI of THB18.9b met 97% and 100% of our estimates.

Due to a change in financial year end from 31 Dec to 30 Sep, FY16 is comprised of 9MCY16. Thus comparing the first nine months period of both years, FY16 revenue was 14.8% higher to THB139.2b and excluding the THB3.8b gain from disposal recorded last year, core net profit rose 14.3% to THB19.0b.

By segment, the Spirits business largely maintained its profits at THB14.5b while Beer’s net profit rose 281% to THB2.8b on the back of increased sales volume and lower raw material costs. Excluding the oneoff gain last year, Non-Alcoholic Beverages also saw a smaller net loss.

We maintain our HOLD with fair value estimate of S$1.01, pending an analyst briefing later today. Separately, the group has announced a final dividend of THB0.40/share, bringing total DPS to THB0.60 (vs. THB0.61 last year), representing a payout of 80%.

Source: OCBC Research - 21 Nov 2016