FSS International Investment Advisory Securities (FSSIA) wrote in an analysis that Ichitan Group Public Company Limited (SET: ICHI) delivered a first-quarter 2026 net profit of THB 287 million, marking a year-on-year increase of 16.9%, but a 9.6% dip compared to the previous quarter. The result was closely in line with analyst expectations.
Excluding a donation expense of THB 8.8 million and a special tax benefit of THB 17.6 million, ICHI’s core profit came in at THB 278 million—up 9.7% quarter-on-quarter and 13.3% YoY.
Total revenue for the period saw a slight decline of 0.7% from the previous quarter but posted a solid 10.5% YoY growth. The domestic market was a clear driver, with sales rising 2.6% QoQ and 16.4% YoY. This growth was attributed to continued hot weather, successful product launches, and robust sales of alkaline water.
However, these domestic gains were partially offset by weakness in overseas performance. Export revenues contracted sharply as the Cambodian market dropped out and OEM (original equipment manufacturer) coconut water sales slumped. Quarterly overseas revenue plunged to only THB 32 million—down 66.4% QoQ and 72.7% YoY—accounting for a mere 5.2% of FSSIA’s full-year export revenue forecast.
Gross margin improved to 24.1%, up from 23.5% in 4Q25 and 23.6% in 1Q25. This margin expansion stemmed from higher production utilization and a more favorable product mix, reflecting the drop in lower-margin OEM sales.
Cost control remained effective, with selling, general, and administrative (SG&A) expenses to sales ratio reduced to 7.2% from 7.9% in the previous quarter (excluding medical equipment donations), though slightly higher than 6.9% in 1Q25.
ICHI’s 1Q26 net profit represents about 23.5% of the company’s full-year earnings forecast. Looking forward, FSSIA notes that rising packaging costs are poised to impact profitability in the second quarter, although the effect should be modest in 2Q26 thanks to existing inventory, with the full impact expected from the third quarter onward.
The company reportedly has no plans to increase prices for existing products but will introduce new items with pricing that reflects higher costs, while stepping up cost and expense management efforts.
FSSIA is closely monitoring the recovery in export income, especially from OEM clients affected by recent coconut water-related news. If the export rebound is delayed or replacement customers cannot be found in time, ICHI’s full-year export revenue target of THB 601 million could face downside risks.
