+ Healthy cash flows and higher dividend. Despite the tough operating conditions, ThaiBev generated free cash flow of Bt28.7bn (S$1.17bn). The final dividend was Bt0.35. FY21 dividend per share was Bt0.50 (FY20: Bt0.46), a 51% payout ratio.
– Plunge in spirit sales. 4Q21 spirit volumes declined 19% YoY to 139.3mn litres. It was a surprise as volumes in the prior quarter were a strong 161.6mn litres. Reasons for the decline were softer consumer sentiment and a trade promo for white spirits in July 2020. The promotion was not repeated this year.
Recovery is underway but the pace may remain tepid in the near term. The lockdown is taking a toll on consumer sentiment and income. The impact of the re-opening of the borders and nightlife entertainment and economic recovery may be more material only in 2H22. ThaiBev offset higher cost pressure with a price increase for white spirits, in October this year. Due to the high market share, the price elasticity of white spirits is not high.