#Pie Securities #ThanStocks – CBG energy drink boosts sales, broker expects Q1/2024 profit to grow
Pye Securities maintains a “Buy” recommendation with a base value of 80.00 baht. 120% YoY, -11% Q0Q) supported by revenue growth of 20% YoY, gross profit margin that expanded 140 bps YoY, and a lower selling and administrative expense ratio YOY of sales support expenses that decreased after i’ r brewery to share Carabao Cup costs 50%, expecting 1Q24 profits to grow strongly YOY but decrease Q๐Q.
Pi Securities expects 1Q24 profit to grow YoY, supported by 1) Domestic sales of branded products, mainly energy drinks, at 1.4 billion.
baht (+20% YOY) as the domestic energy drink market share continued to increase to 23.5% in 1Q24 from 22.0% in 1Q23.
2) Energy drink sales in CLMV are expected to grow 8% YOY from sales in Cambodia which have improved somewhat. But it was mainly supported by Vietnam sales which grew 100% from a low base and 3) gross profit margin which increased YoY. From own brand product gross profit increased to 37.6% in 1Q24, stable Q0Q from 4Q23 as a result of economies of scale from higher production capacity.
#CBG #energy #drink #boosts #sales
