Wolf Money(Thai Bev FY25 results)

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(Source: Thai Beverage PCL presentation slide)

After having a quick look at the results. It was a mixed bag. There are a couple of positive and negatives from my observation.

Negatives

1.) The biggest negative is the fall in profit for the spirit business which is the biggest segment of Thai Beverage business due to the weak economy.

2.) On hindsight, the share swap last year was slightly more advantageous for TCC given the better profit momentum in Fraser Property Ltd compared to the flat earnings’ growth of F&N. The merit of a valuation uplift as a pure f&b for Thai Beverage from the share swap has failed to materialise so far. Thai Bev is still trading close to 2 standard deviation below its average valuation.

Positives

1.) The beer business is showing signs of improvement with profit and margin expansion. The lower raw material costs have helped improve margin. Lower input cost is likely to continue for at least a few quarters.

2.) The improvement to beer unit’s profitability raised the possibility of a BeerCo listing in my opinion. The unit profit was up closed to 25%. Now we need the Vietnam beer business to up their game.

3.) Dividend is maintained at THB 0.47 or THB 0.62 for the full year. Singaporean shareholders should get a small uplift due to stronger Thai Baht against the Singapore dollars.

I will be listening to their results briefing tomorrow for more clues on the prospect of Thai Bev in 2026.

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