Results first-take: FY23 normalised results largely in line
- FY23 normalised results were largely in line. Normalised EBITDA grew 10.8% in constant currencies, slightly above expectations, as ASP growth remained strong.
- FY23 normalised profit was up 6.8% to US$917m, slightly below expectations, given higher-than-expected effective tax rate. Reported net profit was below expectations with a one-off provision in South Korea.
- Dividend of US5.29 cents/share was proposed (up 40% y-o-y), representing a payout ratio of 82% (FY22: 55%). Current rating is BUY with TP of HK$22.80. More to follow up after the results briefing at 11:30am today (Feb 29).
FY23 results. FY23 revenue grew 11.1% y-o-y organically, with volume/ASP up 4.6%/6.2%. GP margin improved by 59bps to 50.4% with unit cost up 5% y-o-y. Normalised EBITDA grew 10.8%, slightly above consensus growth of 9.4% given strong ASP growth. Normalised profit increased by 6.8% to US$917m, slightly below expectations, given higher-than-expected tax rate from country mix. Reported net profit contracted by 6.7% to US$852m, with a one-off provision (recognised in 4Q23) in South Korea regarding an extra claim on customs duties by the authority. Dividend of US5.29 cents/share was proposed (up 40% y-o-y), representing a payout ratio of 82% (FY22: 55%). In 4Q23, group revenue went up by 8.9%, with strong ASP growth of 11.2% offsetting the 2% drop in total volume. 4Q23 normalised profit was US$38m (4Q22 loss: US$19m).
ASP growth stays strong. In 4Q23, ASP grew >11% in both APAC East and APAC West (14.7% growth in China). The company’s price increase in South Korea effectively lifted its ASP in APAC East, while in China, premium/super-premium beer revenue continued to grow by double digit in 4Q23 given the strong channel recovery y-o-y. Company will continue to focus on the channel and geographic expansion of premium/super-premium beers to ride on the premiumisation trend, while the price increase in South Korea should continue to benefit the company. Current rating is BUY with TP of HK$22.80. More to follow up after the results briefing at 11:30am today (Feb 29).