Thai Coconut Public Company Limited (SET: COCOCO) delivered a robust bottom-line performance for the second quarter of 2026, reporting a net profit of THB 122.63 million, a sharp 58.51% increase over the same period last year.
This earnings beat arrived despite a slight 3.61% year-over-year dip in total revenue to THB 1,738.59 million, as the company successfully navigated a slowdown in its Chinese export market through aggressive expansion in the West and improved operational efficiencies.
The company’s performance highlights a strategic pivot in its product mix. While revenue from coconut water faced headwinds—dropping 25.64% in the first half of the year due to lower orders from China—the pet food segment emerged as a high-growth engine, surging 54.02%.
Core profitability was bolstered by a significant expansion in gross margins, which hit 24.14% compared to 17.10% a year ago. This improvement was driven by lower raw coconut material costs and greater economies of scale within the pet food division. These operational gains successfully offset a 63.78% spike in finance costs and non-recurring unrealized losses from foreign exchange derivative adjustments.
COCOCO’s balance sheet reflects a period of heavy capital expenditure. The company’s debt-to-equity ratio rose to 1.61x from 1.27x at the end of 2025, following a THB 500 million bond issuance in April 2026 intended to fund production capacity and working capital.
Management remains focused on long-term supply chain resilience. The company expects its new production facility in the Philippines (NOVOCOCONUT INC.) to commence operations by the end of 2026, a move designed to mitigate raw material risks and support sustainable growth.
