Thai Beverage is strategically delaying its BeerCo initial public offering (IPO) until market conditions improve, as announced at its Annual Information Meeting on 20 June 2025. In the interim, the company is concentrating on bolstering its market position and maintaining margins, particularly in its beer and spirits segments.
The company is leveraging its stronghold in Thailand’s beer market, where its Chang brand has solidified its number one position despite a slowdown in sales growth. This is attributed to a decline in tourist arrivals, which fell by 8% year-on-year in April 2025. In Vietnam, subsidiary SABECO plans a 2% price increase to counter an upcoming excise tax hike, aiming to capture downtrading trends amid weak consumer sentiment.
In Myanmar, Thai Beverage has significantly expanded its market share from 1% in 2020 to 16% in 2024, driven by local production and brand building. The company’s beer revenues in Myanmar grew by 98% year-on-year in the first half of FY25, partially offsetting weaker contributions from Vietnam.
The spirits segment faces challenges with a 26% year-on-year decline in sales in April 2025, largely due to economic pressures and political conflicts in Thailand. Despite this, Thai Beverage has managed to procure raw materials at lower prices, although meaningful margin improvements are expected only from FY26.
Thai Beverage maintains an “Add” rating with a target price of $0.41 (S$0.56), supported by an 8% core earnings per share compound annual growth rate forecast over FY25-27 and a 5.7% dividend yield. The company remains focused on cost controls and volume growth as potential catalysts for future re-rating.
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