Mega Lifesciences (MEGA) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached THB 3,408 million, up 14.4% YoY, driven by strong double-digit growth in Branded business and high single-digit growth in Distribution, with Myanmar showing notable recovery.

• Branded business revenue grew 16.5% YoY, with Southeast Asia contributing 73.9% and Indochina 55.3% of segment revenue.

• Net profit was THB 605 million (reported) and THB 565 million (adjusted), up 34% and 16% YoY, respectively.

• EBITDA increased 42% YoY to THB 869 million, reflecting margin expansion and operating leverage.

• Total comprehensive income for the period was THB 721 million, compared to THB 441.4 million in Q1 2025.

Financial highlights

• Gross profit margin improved to 52.3% from 51.4% YoY, mainly due to favorable segment mix.

• Gross profit for Q1 2026 was THB 1,784 million; cost of sales at THB 1,624 million.

• SG&A expenses rose 6.2% YoY to THB 1,050 million, but as a percentage of revenue, fell from 33% to 31%.

• Operating cash flow was THB 686 million, representing 113% of net profit.

• Basic earnings per share rose to 0.69 Baht from 0.52 Baht YoY.

Outlook and guidance

• Branded business guidance maintained at 8%-12% revenue growth for FY2026, with momentum suggesting the upper end is achievable.

• Distribution business expected to deliver 8%-10% growth for FY2026, with Myanmar recovery supporting the trend.

• Gross margin guidance for Branded business remains at 63%-65%, and 20%-23% for Distribution.

• CapEx plan of THB 2.6 billion over 2026-2028 for manufacturing expansion in Vietnam, Indonesia, and Myanmar.

• Healthy product pipeline with over 80 new products launched in 2022-25, and expansion into Indonesia via acquisition of a manufacturing facility.