The share price of Carabao Group Public Company Limited (SET: CBG) at the time of 14:17 on Wednesday has gained 1.92% to THB 79.50 per share. The lowest price during the session was THB 78.50 and the highest was THB 81.00, with a total trading value of THB 360.60 million.
Daol Securities (Thailand) stated in an analysis that the securities analyst has estimated CBG 4Q24 net profit at THB 792 million, or a 22% increase from the same period a year earlier and a 7% hike from the previous quarter, which is lower from the old estimate due to higher special bonus expenses for employees.
The expansion of profit growth from 4Q23 was attributable to:
1) Total revenue has expanded 12% compared to the same period of the last year, bolstered by revenue from a 37% boost in energy drink sales in the country from the very same period.
This revenue gain was due to the strategy of maintaining a THB 10 sales price, which helped reinforce the 26% market share for Carabao Dang at the end of each December. In 4Q24 Carabao Dang had its market share at 25.60%, 23.20% in 4Q/23, and 24.90% in 3Q24.
Meanwhile, revenues from distribution also reached its all-time high, supported by standout income from rice whiskey sales, which helped compensate for 2% of revenue lost from foreign markets compared to the same period of a year earlier.
2) Gross profit margin (GPM) has expanded from the same period last year due to an increase in production volume.
3) SG&A to sales has extended, due to special bonuses to employees, and increasing marketing costs.
The profit that rose from the previous quarter is due to seasonal adjustment, thus the analyst maintains the “Buy” suggestion and the target price at THB 95.00.
