Thai Beverage Public Company Limited

For FY2025, ThaiBev reported total sales revenue of THB 333,286 million, down 2.1% year over year, and net profit included associated companies of THB 31,153 million, down 11.7%. Spirits revenue declined 1.8% to THB 118,604 million and net profit fell 7% to THB 19,880 million. Beer revenue fell 2.5% to THB 123,222 million, but net profit rose 24.6% to THB 6,503 million. Nonalcoholic beverage revenue declined 1.6% to THB 64,774 million and net profit fell 13.4% to THB 5,141 million. Food revenue was THB 21,899 million, down 1.7%, with a net loss of THB 128 million, while the others business revenue declined 7.4% to THB 4,999 million with a net loss of THB 243 million. The board proposed a dividend of THB 0.62 per share, including an interim THB 0.15 and proposed final THB 0.47. Management did not provide formal next-quarter or full-year FY2026 guidance, but said costs should be favorable next year and that they expect demand to improve with government stimulus and election-related consumption effects.

Management’s tone was cautious but constructive. On spirits, executives said they do not see a structural change yet, framing the volume decline as driven mainly by a weak Thai economy, household debt, and temporary disruptions rather than a permanent shift in demand. For beer and some international markets, they sounded more upbeat, highlighting good momentum in Thailand, continued leadership in Vietnam, and a strong Myanmar position.

The CFO commentary focused on balance sheet, capex, dividends, and cost trends. Kosit Suksingha said net gearing rose mainly because EBITDA was softer, even though absolute interest-bearing debt was lower, and he said the large Malaysia and Cambodia investments are mostly behind them so 2026 capex should be back toward a normal level by mid-next year. Prapakon Thongtheppairot said the company will maintain a dividend of at least half of profit, subject to cash flow, while noting the payout ratio increased slightly despite softer earnings. On costs, management said molasses is currently 30% to 35% lower than last year, malt is still declining by double digits, broken rice is down more than 20% further, and resin is about 60% of last year’s price, all of which should support profitability.

Analysts focused on spirits volume decline, elevated marketing spend, beer competition and IPO timing, raw material costs, and NAB market share/pricing. Management said spirits weakness was concentrated in Q4 due to border conflict disruption, floods, and a weak consumer backdrop, and they do not see a structural issue. On marketing, they said spending will stay cautious and efficient, with more use of existing trade networks and no desire to over-invest in brand building; on beer, they said competition in Thailand remains a duopoly, Vietnam is still very fierce, and Bia Saigon remains #1. On the beer IPO, management repeated that market conditions are not conducive yet, so the focus is on improving the business until the market is ready.