ThaiBev is expected to return to earnings growth in FY2024 with the recovery in the performance of its beer business in Vietnam, which was “muted” after a “dismal” FY2023. Sabeco, ThaiBev’s brand in Vietnam, is also “uniquely positioned” to weather the short-term consumer weakness in Vietnam given its mainstream brand positioning. The analysts also expect to see an uplift in earnings from the optimisation of advertising and promotion (A&P) spending.
DBS Group Research analysts Andy Sim and Chee Zheng Feng remain positive on Thai Beverage (SGX:Y92
) (ThaiBev), which the analysts call the “undisputed market leader [of beverages] in Southeast Asia (SEA).
“Its portfolio of alcoholic and nonalcoholic brands includes Chang, Saigon Beer, Hong Thong, Mekhong, Grand Royal, and Oishi green tea, amongst others. These brands have held dominant market share in their respective geographies in the past decade. The group also has exposure in the food business, and hold franchises for KFC and Starbucks, in Thailand,” they write in their Nov 20 report.
