ThaiBev Reports 1Q26 Business Update: EBITDA Growth Despite Revenue Headwinds

Summary of Key Developments for the Quarter Ended 31 December 2025

BANGKOK, 13 February 2026 – Thai Beverage Public Company Limited (“ThaiBev”) has released its business update for the first quarter ended 31 December 2025. The Group showed resilience, delivering higher EBITDA despite a year-on-year (YoY) decline in overall sales revenue, reflecting both operational strengths and ongoing challenges in the macroeconomic environment.

Key Highlights for Investors

• EBITDA Growth: The Group recorded a YoY EBITDA increase to Baht 16,745 million (up 1.8%), underscoring improved operational efficiency and cost management.
• Sales Revenue: Total sales revenue declined by 6.0% YoY to Baht 86,703 million, driven by softer consumer sentiment and challenging market conditions in core segments.
• Segment Performance:
  • Spirits: Delivered 3.5% YoY sales growth (Baht 33,367 million) and 6.9% EBITDA growth (Baht 8,496 million). The EBITDA margin expanded from 24.7% to 25.5%, supported by effective brand investments and robust international performance.
  • Beer: Sales revenue declined by 14.4% YoY to Baht 30,923 million, with a 9.0% drop in sales volume. However, EBITDA increased by 4.7% (Baht 4,641 million) as margins improved from 12.3% to 15.0%, thanks to lower material costs and production efficiencies. Key headwinds included subdued demand in Thailand and Vietnam, and adverse currency effects.
  • Non-Alcoholic Beverages (NAB): Sales dropped 8.6% YoY to Baht 15,501 million, with EBITDA falling 13.1% to Baht 2,898 million. The decline reflects lower sales volumes and increased brand investment, as well as unrealized FX losses.
  • Food: Revenue edged down 1.2% YoY to Baht 5,621 million. EBITDA was down 10.9% to Baht 590 million, mainly due to branch expansion and higher labor costs.
  • Others: This segment, including publishing, printing, and education, posted a 1.5% revenue increase to Baht 1,363 million and a notable 81.8% surge in EBITDA to Baht 120 million, driven by the education business in Singapore and improved cost structure in printing.

Financial Position and Liquidity

• Total Assets: Increased to Baht 516,747 million as of 31 December 2025, up from Baht 509,591 million at the previous quarter end.
• Total Liabilities: Rose to Baht 298,186 million, with current liabilities up significantly to Baht 97,537 million (from Baht 88,656 million), indicating a shift in short-term obligations.
• Shareholders’ Equity: Improved to Baht 218,561 million.
• Interest-Bearing Debt:
  • Total reduced slightly by Baht 1,757 million to Baht 225,769 million.
  • Net interest-bearing debt to equity ratio improved to 0.82x (from 0.85x).
  • Net interest-bearing debt to EBITDA (LTM) was stable at 3.24x.
  • Cash and cash equivalents increased by Baht 1,847 million to Baht 45,692 million.
• Cash Flow:
  • Net cash from operating activities was Baht 13,348 million, indicating strong internal cash generation.
  • Net cash outflows from investing activities totaled Baht 10,930 million, reflecting ongoing investments.
  • Net cash outflows from financing activities were Baht 2,667 million.

Important Notices for Shareholders

• Segmental Shifts: The Spirits segment remains the growth driver, while Beer and NAB face significant headwinds. However, improved margins in Beer and strong cost controls could positively impact future earnings.
• Margin Expansion: Despite revenue declines in some segments, EBITDA and profit margins improved in both Spirits and Beer, signaling effective cost management and pricing strategies.
• Debt and Liquidity: The reduction in net interest-bearing debt and improvement in key leverage ratios may be viewed positively by investors, reducing refinancing risk and supporting capital allocation flexibility.
• Risks: The update is based on unaudited management accounts. Figures are subject to change upon audit, and currency fluctuations as well as market sentiment could impact future results.
• Potential Price Sensitivity:
  • The resilience in EBITDA, especially margin improvements in the Beer segment despite revenue pressures, could be interpreted as a positive signal for operational execution and future profitability.
  • Conversely, continued sales weakness in NAB and Food, along with higher short-term liabilities, may weigh on sentiment if not reversed in coming quarters.

Conclusion and Outlook

ThaiBev’s 1Q26 update illustrates a Group that is managing through challenges with prudent cost controls and selective investment, resulting in improved margins and stable cash flows. Investors should watch for further developments in consumer sentiment, currency trends, and progress in the NAB and Food segments. The unaudited nature of these results warrants some caution, but the underlying operational improvements, especially in Spirits and Beer, could be supportive of share price performance if sustained.

Disclaimer: This article is based on unaudited management accounts and internal records. Shareholders and investors should exercise caution and not place undue reliance on this update when making investment decisions. Figures are subject to change following audit. This is not investment advice.

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