Thai Bev posts 'nearly magical surge' in business activity in 1H12

Spirit and beer sales volume rose 10.1% and 9% respectively, says Maybank Kim Eng.

Here's more from Maybank Kim Eng:

Nearly magical surge in business activity: Spirit sales volume rose 10.1% in 1H12 but decelerated mildly on Q/Q basis in 2Q12 as per seasonality ie long holidays is bad for spirit sales. Beer on the other hand rose 9%Y/Y in the 1H12 and Q/Q accelerated in 2Q12 at 11% as reverse seasonality to that of spirit sales.

As with other consumer-related businesses, Q/Q comp is largely irrelevant because of pronounced seasonality. Nonetheless we point out that the sequential improvement in the beer division is a very positive development for THBEV. Though still losing money and 2Q12 losses in fact losses widened by 104%Y/Y, a sustained improvement in volume will be constructive to future profitability.