ThaiBev raises a glass as alcohol business drives first-quarter growth

Beer was a star performer.

ThaiBev’s strong first quarter results was driven by double-digit growth in its alcohol business, with a marked improvement in both spirits and beer sales.

A report by CIMB noted that spirits sales rose 10% in the first quarter due to channels stockpiling, and market share gains.

“The sports tax has since been passed on to consumers and selling prices are up 1.5%-2.0%. 2Q spirits margins could improve even as volumes fall,” stated the report.

Beer, the other impressive division, saw revenue grow 17.5% year-on-year, partly due to a low base in the same period last year.

“Nevertheless, volume traction is clear and beer profitability is improving markedly; this uptrend has all the likelihood of sustaining,” the report noted.

“Clearly, beer profitability has swung around, on operating leverage and the tailwinds of raised prices last year; we expect the positive signs to sustain,” CIMB added.