Thailand’s exports showed stronger growth with 6.8% expansion in April, beating a Reuters poll for only a 0.35% growth.
The numbers in the food and beverage sector have revealed significant increases in key markets. Non-alcoholic beverages saw a year-on-year growth of 20%, but a month-on-month decrease of 10%, with a 16% growth in the first four months of the year.
Sappe Public Company Limited (SET: SAPPE), which is one of Thailand’s leading manufacturers and distributors of beverage products, saw a promising sign of recovery in its key markets, including Indonesia (56% increase), the Philippines (10% increase), South Korea (16% increase), France (39% increase), and the US (40% increase), all showed positive growth.
Meanwhile, exports to ICHI’s key markets such as Cambodia (20% growth), Vietnam (15% growth), and Laos (40% growth) also demonstrated strong performance.
Chicken exports increased by 19% year-on-year, despite a 7% decrease month-on-month, with growth seen in most key destinations.
Processed/canned seafood exports recorded a 21% year-on-year increase but a 10% decrease month-on-month, mainly driven by growth in the US market. Shrimp exports, however, experienced a 17% year-on-year decline and a 14% month-on-month decrease, while pet food exports surged by 61% year-on-year, despite an 8% month-on-month dip, with strong growth observed in the US and Japan.
CGS International Thailand wrote in a note that non-alcoholic beverage exports continued to rise in April, with exports to Sappe’s key markets performing impressively, aligning with their sales targets for the second quarter of 2024, aiming for a yearly target growth of 20-25%.
Based on the strong export numbers indicating a demand recovery for GFPT, CPF, and ICHI, CGSI favors these food companies. Additionally, they anticipate promising 2Q24F results for ICHI and Sappe due to increased exports, with expectations of a boost in domestic sales through the high summer temperatures.
