Earnings Report /
Thailand

Carabao Group PCL: Substantial miss for 3Q22

  • Profit was below our estimate and the consensus

  • CBG reported earnings of Bt475m for 3Q22

  • The 3Q22 top-line rose 19% YoY

Bualuang Securities
14 November 2022

The disappointing 3Q22 result will put the kibosh on the stock price rally of the past five weeks (from a low of Bt80.50 on Oct 5 to Bt98.50 on Nov 11). We expect street forecast-downsizing this week. CBG lacks short-term earnings drivers. However, our BUY call stands, as we expect distribution business revenue to expand further and domestic energy drink sales to increase materially over the long haul. Our projection points to 16% YoY earnings growth for 2023.

Profit was below our estimate and the consensus

CBG reported earnings of Bt475m for 3Q22, down by 21% YoY and 36% QoQ. The result missed our estimate and the consensus by 25%, mostly because the top-line fell short of expectations and cost-of-goods sold and SG&A expenses were higher than we had assumed.