HaadThip Doubles Down on Efficiency to Maintain Profit in Q1 Amid Softening Southern Economy

Bangkok, May 15, 2025 – HaadThip Public Company Limited (HTC) has announced its operating results for the first quarter of 2025, with total sales of 2.1 billion baht, representing a 1.4% decrease compared to the same period last year. In response, the company swiftly adjusted its strategy to focus on cost management and operational efficiency, resulting in a gross profit margin and net profit margin of 42.1% and 8.7%, respectively, for the quarter. There has been a slowdown in general non-alcoholic ready-to-drink (NARTD) business growth in the South and the sparkling category slightly declined during the quarter.

HaadThip Public Company Limited (HTC), the authorized bottler and distributor of Coca-Cola beverages in 14 Southern provinces, reported first-quarter 2025 performance with sales revenue of 2.1 billion baht, down 1.4% year-on-year. According to Nielsen Thailand, while the overall NARTD beverage market in the South grew by 1.9% in the first three months of 2025, this growth was driven mainly by the water segment, which rose by 4.3%. In contrast, the sparkling soft drink segment contracted by 0.5%, and the ready-to-drink juice segment declined by 0.6%. Data from the Bank of Thailand also indicates that the Southern economy remained flat in Q1 2025 compared to the previous quarter, supported by agricultural and tourism income and government stimulus measures in early Q1. However, these drivers weakened towards the end of the quarter.

As a result, HaadThip adjusted its strategy in Q1 by emphasizing cost management and operational efficiency to safeguard profit margins. This approach was supported by lower raw material costs year-on-year, price adjustments implemented in 2024, and packaging optimization that reduced material usage. As a result, the gross profit margin rose to 42.1%, an increase of 1.7 percentage points compared to the same period last year. Selling and administrative expenses edged up by 4.5%, driven primarily by a 14.5% increase in promotional and marketing activities to adapt to shifting sales channels and support demand in a soft market. Employee-related expenses also rose due to compensation and benefits adjustments and ongoing employee development initiatives. Additionally, financial costs rose due to financing costs of investments in the third PET production line and a new glass bottling line to support future growth. Consequently, the company reported a net profit of 181.9 million baht for the quarter, a decrease of 1.1 million baht, or 0.6%, compared to the same period last year, with a net profit margin of 8.7%, an increase of 0.1 percentage point.

Major General Patchara Rattakul, Chief Executive Officer, commented on the results and short-term business outlook.

“We recognize that the Southern economy showed clear signs of slowing, especially toward the end of the quarter—a pattern we typically observe during the fasting period observed by our Muslim communities in Thailand and tourists from Malaysia. This year, the impact was compounded by unusually extended cool weather and earlier-than-usual rainfall, both of which dampened consumer spending on our products. As we look ahead to the second quarter, we anticipate continued pressure on consumer spending driven by global economic uncertainty, weak consumer sentiments and a slowdown in the tourism sector. In response, we are committed to prudent cost and expense management while actively pursuing growth opportunities - particularly in the zero-sugar segment, which continues to gain traction. In Q1, our zero-sugar portfolio grew by 11.4% year-on-year and still represents a significant growth opportunity, accounting for just 5.8% of total sales.”

According to Nielsen Thailand data as of the end of Q1 2025, HaadThip remains the market leader in the non-alcoholic ready-to-drink (NARTD) beverage segment in Southern Thailand, with a market share value of 24.2%. In the carbonated soft drinks segment, HaadThip retains its top position in the region with a commanding market share of 78.4%.