Thai President Foods reported a weaker first half of 2026 as softer consumer demand and external market disruptions weighed on sales. However, lower raw material costs helped the company maintain profitability and limit the decline in earnings.
Revenues declines amid challenging market conditions
For the six months ended 30 June 2026, Thai President Foods recorded sales revenue of THB13.06 billion, down 6.6% year-on-year from THB13.99 billion in the same period of 2025.
Management attributed the decline to a combination of weaker domestic consumption and softer export demand. In Thailand, consumer spending slowed following the end of the government’s “Khonlakhrueng Plus” economic stimulus programme in December 2025. Border trade was also affected by the closure of Thailand-Cambodia checkpoints, reducing sales in border regions. Meanwhile, bakery sales faced pressure from intensified competition and price reductions.
Internationally, demand was impacted by tensions surrounding the Thailand-Cambodia border situation, which negatively affected demand for Thai-origin products, including instant noodles.
Profitability supported by lower costs
Despite lower revenue, Thai President Foods benefited from a significant reduction in production costs. Cost of sales fell 9.1% year-on-year to THB8.69 billion, a faster rate of decline than sales. This helped the company maintain gross profit at THB4.37 billion, only 1.3% lower than the previous year.
As a result, gross profit margin improved to 33.5%, up from 31.7% in the first half of 2025. The company stated that lower raw material prices were the primary driver of margin expansion.
Net profit falls less than revenue
Net profit attributable to shareholders reached THB1.83 billion in H1 2026, a decline of 4.9% year-on-year from THB1.92 billion in the prior-year period.
The relatively smaller decline in net profit compared with revenue highlights the company’s ability to offset part of the sales weakness through improved cost management and stronger gross margins. However, earnings were still affected by lower overall sales volumes and a rise in selling and administrative expenses, which increased 4.3% year-on-year.
