Should ThaiBev expect an improvement in beer sales?

Decline in alcohol consumption could only be temporary.

ThaiBev is expected to ride on the recovery of alcohol consumption in Thailand.

According to UOB Kay Hian analyst Thai Wei Ying the mourning period in the country may taper off in 2H!7.

"We view the decline in alcohol consumption in 1H17 to be temporary, as signs of recovery have begun to emerge," the analyst said.

Tracking the latest industry data released by Bank of Thailand, we note that beer sales volume has rebounded with a healthy yoy growth of 5% and 10% as of April and May,
respectively.

This is compared to h the six months following the Oct 16 mourning period where monthly volumes recorded yoy decline ranging 2-17%.

"We believe this may be a positive sign that impact from the mourning period is gradually tapering off and alcohol consumption is picking up, the analyst added.