Mega Lifesciences (MEGA) Q2 2025 earnings summary

Executive summary

• Strategic focus on specialization and brand development in nutrition and health products, with a long-term distribution plan in place.

• Five-year strategic plan underway, targeting business growth and product pipeline expansion.

• Operating revenue for 1H25 declined 14.0% year-over-year, mainly due to a sharp drop in Maxxcare business in Myanmar.

• Mega We Care segment revenue grew 2.6% YoY, with low double-digit growth in other markets after adjusting for Myanmar and currency effects.

• Interim financial statements for the three- and six-month periods ended 30 June 2025 were prepared in accordance with Thai Accounting Standard No. 34 and approved by the Board on 14 August 2025.

Financial highlights

• Second half revenue typically higher than the first, with historical splits of $45.55M and $48.50M.

• Forex and export growth, particularly in Myanmar, contributed to a 12% increase.

• Gross margin improved to 51.5% from 47.7% YoY, driven by a favorable segment mix and higher Maxxcare margins due to currency effects in Myanmar.

• Dividend of Baht 0.80 per share, totaling Baht 697.50 million, approved for both 2024 and 2025.

• Additional investments in subsidiaries and joint ventures to support business expansion in Indonesia and Vietnam.

Outlook and guidance

• Expectation of improved performance over the next three years, with significant gains projected by late 2028 and early 2029.

• Target to double consolidated net profit by 2025 compared to 2019.

• Over 120 new products in the pipeline, with 60 launched between 2022-24, expected to drive future sales.

• Indonesian manufacturing acquisition to provide access to a large new market, with meaningful contributions expected from 2026.

• Board approved another dividend of Baht 0.80 per share (Baht 697.50 million) to be paid in September 2025.