Mega Lifesciences (MEGA) Q3 2025 earnings summary

Executive summary

• Nine-month 2025 revenue was THB 10.4 billion, down 10.3% YoY, mainly due to a sharp drop in Myanmar, while branded business grew in other markets.

• Branded business grew 4.3% YoY to THB 6.3 billion; distribution business declined 27% YoY but stabilized in Q3.

• Gross profit margin improved to 51.8% for nine months, driven by a favorable segment mix.

• Net profit for nine months was THB 1.335 billion, nearly flat YoY; adjusted net profit declined 10.1% YoY due to Myanmar and tax changes.

• Basic earnings per share for the nine months was THB 1.53, slightly lower than THB 1.57 YoY.

Financial highlights

• Q3 2025 operating revenue was THB 3.8 billion, up 14% QoQ.

• Q3 branded business revenue grew 7.7% YoY; distribution revenue decline narrowed to 7.3%.

• Q3 gross profit margin was 52.3%; branded business margin at 65.6%, distribution at 23.1% (adjusted).

• Q3 net profit was THB 494 million, up 29.1% YoY and 26.4% QoQ; adjusted net profit at THB 514 million, up 18.3% QoQ.

• SG&A expenses remained flat YoY at THB 1.1 billion in Q3, but rose as a percentage of revenue to 31.5% due to lower Maxxcare sales.

Outlook and guidance

• Branded business expected to maintain low double-digit growth (10%-12%) for 2025.

• Full-year adjusted net profit guidance is THB 1.95 billion.

• Strategic plan targets doubling branded business in five years, requiring 10%-15% annualized growth.

• Plans to double consolidated net profit from 2019 levels by 2025, with expansion into Indonesia expected to contribute from 2026.

• Continued focus on expanding in underpenetrated markets in Southeast Asia and Sub-Saharan Africa, with investments in manufacturing capacity and ESG initiatives.