Over FY2022 to FY2024, ThaiBev’s spirits volumes fell by a compound annual growth rate (CAGR) of 2%. With this, Tiruchelvam has lowered his outlook to low-single-digit volume growth, down from the mid-single-digit recovery previously.
Aletheia Capital analyst Nirgunan Tiruchelvam has downgraded Thai Beverage (ThaiBev) to “sell” from “buy” amid a weak domestic demand backdrop in Thailand and tighter alcohol restrictions.
“ThaiBev’s core spirits business is exposed to Thailand’s weak domestic demand backdrop. Household debt remains elevated at [around] 90% of GDP, while real wage growth has lagged inflation, constraining discretionary spending,” says the analyst in his Jan 6 report.
