News
FOOD & BEVERAGE | Staff Reporter, Singapore
view(s)

Here's why ThaiBev's turnaround may already be in the works

A rebound in beer consumption and retail sales bodes well for the second largest Thai beer player.

Thailand’s domestic beer consumption rose jumped 21% YoY in April, signalling what could be a demand recovery for Thai Beverage which has faced a slump in 2018.

Also read: Bottoms up: The worst is over for ThaiBev

The latest statistics from Thailand’s Office of Industrial Economics revealed that domestic beer consumption was up 21% YoY in April, a sharp turnaround from the slow demand growth in March.

RHB Research analyst Juliana Cai noted that the inclusion of Sabeco and exports could have distorted ThaiBev’s YoY numbers, but – on a seven-month basis (Oct 2018-Apr 2019) – the kingdom’s beer consumption has grown 9% YoY. “We believe ThaiBev will grow in tandem, given that it is the second-largest beer player in the market with a c.40% market share,” she said.

Beer consumption is not the only figure supporting the firm’s recovery. Thailand retail sales were up 12% YoY in the last two quarters. “Whilst farm income was stable, we believe the economic stimulus package – including state welfare cards to 14.5 million low-income earners and personal income tax deductions – should help boost domestic spending,” said Cai.

“Amidst market uncertainties revolving around US-China trade tensions, we favour ThaiBev over other Singapore-listed consumer companies, given the strength of the THB compared to regional currencies,” she concluded.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.