Mega Lifesciences (MEGA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was THB 3,208 million, down 14.1% year-over-year, mainly due to a sharp decline in the Myanmar distribution business, while branded products grew 2.8%.

• Net profit was THB 449.8 million, slightly lower than last year, with adjusted net profit at THB 486 million.

• Gross margin improved to 52.2% from 46.8% year-over-year, driven by segment mix and improved margins in Maxxcare.

• Operating cash flow was THB 398 million, representing 88% of profits.

• Total assets and equity increased as of 31 March 2025, reflecting financial stability.

Financial highlights

• Branded business revenue reached THB 1,984 million (+2.8% YoY); distribution business declined 33.5%, mainly due to Myanmar.

• Branded business gross margin stable at 65%; distribution business margin at 29%.

• SG&A costs were flat at THB 1,064 million, but higher as a percentage of revenue at 33.2% due to lower sales.

• Adjusted net profit margin was 15.1% in Q1 2025, up from 13.2% in Q1 2024.

• Cash and cash equivalents at 31 March 2025 stood at THB 3,559 million.

Outlook and guidance

• Myanmar distribution is expected to bottom out by Q4 2025, with no further significant downside anticipated.

• Branded business in other markets is expected to sustain high single-digit revenue growth (6%-8% after currency adjustment).

• Target to double 2019 consolidated net profit by 2025, leveraging branded product growth and new market expansion.

• Indonesia plant to reach EBITDA break-even by 2025 and bottom-line break-even by 2026-2027.

• Over 120 new products in the pipeline, with 60+ launched between 2022-2024; Indonesia expansion expected to contribute from 2026.