Mega Lifesciences (MEGA) Q3 2025 earnings summary

Executive summary

• Nine-month 2025 revenue was THB 10,483 million, 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 6,365 million, while distribution business declined 27% YoY, though the rate of decline narrowed in Q3.

• Gross profit margin improved to 51.8% for nine months 2025, up from 49.6% YoY, driven by a favorable segment mix.

• Net profit for nine months was THB 1,335 million, nearly flat YoY; adjusted net profit declined 10.1% YoY due to Myanmar and loss of tax privileges.

• 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; branded business revenue grew 7.7% QoQ.

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

• Q3 reported net profit was THB 494 million, up 26.4% QoQ and 29.1% YoY; 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 higher as a percentage of revenue due to lower sales.

• Cash and cash equivalents at period end were THB 3,423 million, up from THB 2,910 million a year earlier.

Outlook and guidance

• Branded business expected to maintain low double-digit growth (10%-12%) for 2025; target to double branded business in five years, implying 10%-15% annualized growth.

• Q4 expected to be seasonally stronger; full-year adjusted net profit guidance is THB 1,950 million.

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

• Dividend payout ratio expected to remain at 60%-70% barring unforeseen events.

• Continued focus on operational efficiency, cash flow generation, and expansion in underpenetrated markets.