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TA Sector Research
Consumer Sector - 1QFY24 Results Within Our Expectations
Publish date: Wed, 05 Jun 2024, 11:13 AM
Most companies reported no surprises as earnings of 10 out of 15 stocks under our coverage aligned with our projections. Conversely, 5 consumer counters exceeded our earnings estimates including Breweries (Carlsberg and Heineken), Food and Beverages (Able Global and F&N) and a Retailer (Aeon).
The positive variance is predominantly driven by heightened festive demand and the stabilised key raw material costs in 1QCY24. Breweries’ outperformance is attributed to robust demand preceding the price hike. Meanwhile, resilient festive volumes and favourable input costs (sugar, skim milk powder, whole milk power, soybean meal, corn, etc.) have driven improvements for both retailer and F&B players. This quarter, none of the companies fell short of our earnings forecasts.