ThaiBev's 'positive recovery' stays in 2023: analyst

Its gross profit margin will stabilise despite high commodity prices.

Analyst, RHB, projected that the SGX-listed Thai Beverage will record a sustained positive recovery in 2023 despite macroeconomic woes next year.

In a brokerage report, RHB said the normalisation of economic activities and high tourist arrivals will heighten the company's recovery.

It will continue to be affected by the higher raw material prices. But the gross profit margin of ThaiBev will remain stable even if there are volatile commodity costs.

"On the other hand, distribution costs should remain elevated as Thai Bev may look to intensify its brand building marketing initiative to spur spending and strengthen its market share now that most of the restrictions are lifted," said RHB.

Thai Beverage's revenue went up 13% due to its recovery in beer segment, non-alcoholic drinks, and food segments.