ThaiBev finally gets an uplift from spirits segment

Spirits volume recorded a turnaround and grew 4.3%.

Despite the lower yields from its beer segment, ThaiBev has seen an uplift coming from its spirits segment.

According to RHB, spirit consumption in Thailand has finally made a turnaround, leading to a 4.3% increase in spirits volume and 4.5% growth in spirits revenue.

"We think 4Q17 would see a continuation of the positive growth trajectory as we expect trade agents to stock up on inventory before the excise tax hike in Sep 2017," analyst Juliana Cai said.

The spirits division is Thai Beverage’s (Thaibev) largest segment, contributing 57% to topline and 82% to earnings before interest, taxes, depreciation and amortisation, and it has a 80% market share in Thailand’s spirits industry.

"Therefore, an uplift in spirit volumes would continue to bode well for the group," Cai said.