Sluggish economy and Thailand–Cambodia tensions drag Q3 beverage performance

The non-alcoholic beverage market, valued at over 100 billion baht, is facing major challenges this year. Cooler-than-usual weather during the key high season from late March to May left brands unable to build sufficient sales momentum.

By the third quarter, many companies were hit by further pressure from the Thailand–Cambodia border conflict, which disrupted cross-border trade. Markets that rely heavily on CLMV demand also continued to struggle, particularly Cambodia and Myanmar. Meanwhile, exports were affected by a fragile global economy and volatile exchange rates.

Q3 results across beverage categories are summarised as follows:

Zeppe, Malee and Thai Coconut report lower profits

Sappe PCL posted third-quarter sales revenue of 1.378 billion baht, down 16.2% year-on-year, with net profit falling 39% to 183.3 million baht. For the first nine months, sales revenue stood at 4.038 billion baht, down 25.2%, while net profit fell 38.4% to 654.9 million baht.

The revenue decline was driven by the global economic slowdown affecting international sales, exchange-rate appreciation, the Middle East conflict and US tax measures. In Asia, Sappe faced intensified competition in South Korea and issues with distributors in Indonesia.

Malee Group PCL recorded third-quarter sales and service revenue of 2.028 billion baht, down 2.3%, while net profit edged up 2.1% to 61.9 million baht. For the nine-month period, sales revenue fell 9.3% to 5.852 billion baht, with net profit down 15.8% to 239.3 million baht.

The drop in sales was due to dairy products in overseas markets being affected by the Thailand–Cambodia border trade disruption. Net profit fell as the company increased its provision for product deterioration.

Thai Coconut PCL reported third-quarter sales and service revenue of 1.77 billion baht, down 8.17%, with net profit dropping 59.69% to 69.4 million baht. Over nine months, sales and service revenue increased 4.73% to 5.117 billion baht, while net profit fell 64.9% to 211.6 million baht.

The company attributed the sales decline mainly to coconut water products, with export orders in some countries softening, as well as the global economic slowdown.

Osotspa and Carabao pressured by weaker overseas markets

Osotspa PCL, which operates in energy drinks and consumer goods, generated third-quarter sales revenue of 5.604 billion baht, down 7.3% year-on-year. Net profit surged 293.8% to 700 million baht, while normalised operating profit increased 4.2%. For the nine-month period, sales revenue dropped 6.8% to 19.242 billion baht, but net profit rose 177.7% to 2.975 billion baht, with normalised operating profit up 10.6% to 2.68 billion baht.

As the “market leader in energy drinks”, Osotspa retained the No.1 position with a 44.4% market share, remaining stable. Its diverse portfolio includes M-150, Lipovitan, Ginseng Insam and Shark. In functional beverages, it holds a 47.8% market share, with C-Vitt dominating at 77.6%.

However, Osotspa reported weaker overseas sales, particularly in Indonesia, Cambodia and Myanmar.

Carabao Group PCL posted third-quarter revenue of 5.496 billion baht, up 8%, but net profit fell 20% to 616 million baht.

Notably, international sales in Q3 dropped sharply to 727 million baht, a 42% decline year-on-year, contracting across all major CLMV markets – Cambodia, Laos, Myanmar and Vietnam – due to the Thailand–Cambodia land-border conflict. Sales in the UK also weakened.

Ichitan and Haad Thip deliver stronger Q3 profits

Ichitan Group PCL recorded third-quarter sales revenue of 2.135 billion baht, down 0.3%, while net profit rose slightly by 0.3% to 358.3 million baht. For the nine months, sales revenue dropped 6.7% to 6.144 billion baht, with net profit down 8.1% to 1.010 billion baht.

The decline in sales was attributed to a 3.7% contraction in the domestic market, pressured by the weak economy and a shorter-than-usual summer season.

Haad Thip PCL, bottler and distributor of Coca-Cola, Minute Maid and Namthip across 14 southern provinces, generated third-quarter sales revenue of 2.041 billion baht, up 9%. Net profit rose 13% to 131 million baht. For the nine-month period, sales revenue fell 2.3% to 6.08 billion baht, while net profit decreased 3.3% to 455.5 million baht.

Volume sales in Q3 grew 7.9%, with 18 million cases sold, despite the overall non-alcoholic ready-to-drink (NARTD) market expanding by only 0.2%. The company attributed its growth to effective marketing strategies, while the decline in profit was due to provisions for machine impairment.