Carabao Group Public Company Limited (SET: CBG) reported its first-quarter 2026 financial results, revealing a challenging start to the year as net profit fell by 20% compared to the same period in 2025. The company recorded a net profit of THB 611 million, down from the previous year, primarily weighed down by a sharp contraction in export markets.
Total sales revenue remained relatively flat at THB 5,321 million, representing a marginal 0.1% year-on-year decline. This stability masked a significant shift in geographic performance. Domestic sales surged by 13% to THB 4,528 million, driven by a 7% increase in Carabao Dang energy drink sales and a 20% jump in the distribution of third-party products, particularly alcoholic beverages. However, these domestic gains were offset by a 40% collapse in international sales, specifically in the CLMV region. The decline was most acute in Cambodia, where recent border conflicts severely disrupted trade.
Profitability was further squeezed by a shift in the sales mix and rising operational costs. Gross profit dropped 6% to THB 1,378 million, with the gross profit margin (GPM) contracting to 26%. This margin compression stemmed from a higher proportion of lower-margin third-party distributed products, which rose to 47% of the sales mix compared to 39% in 1Q25. Additionally, SG&A expenses climbed 16% to THB 624 million. This spike was largely attributed to a 39% rise in administrative expenses as CBG was forced to reclassify excess production costs following the slowdown in Cambodian orders.
The company’s bottom line also faced pressure from an increased effective tax rate of 24%, up from 20% in 1Q25, due to intercompany sales to overseas subsidiaries that have not yet commenced production.
Despite these short-term pressures, CBG is signaling confidence in its intrinsic value. The Board of Directors recently approved a share repurchase program worth up to THB 2,000 million, citing the need to manage excess liquidity and enhance earnings per share (EPS) moving forward.
