Thai Listed Companies Show Better Performance in Lowering Debt Costs despite Diminishing Profits in 1H23

  • H1 sales down 2.8% y-o-y to THB 8.34 trillion
  • H1 net profits down 26.6% to THB 456.79 billion
  • D/E ratio down to 1.53 times at the end of June 2023


Listed companies reported lower sales in the first six months of 2023 mainly stemming from  energy and petrochemicals sectors, meanwhile, the accelerating economic activities pushed up selling and administrative expenses, and consequently depressed profitability of businesses across sectors.

SET Senior Executive Vice President Manpong Senanarong said that 764 listed companies, representing 92.49 percent of 826 companies listed on SET and Market for Alternative Investment (mai) with the six-month period ended June 30, 2023 (excluding property funds and infrastructure funds), reported their financial performances. A total of 577 companies posted net profits, accounting for 75.52 percent of SET and mai-listed companies that submitted their financial statements.

In the first half of 2023, SET-listed companies’ combined sales fell by 2.8 percent from the same period last year to THB 8.34 trillion (approx. USD 238.90 billion). Listed companies’ core and net profits fell due to an increase in their production costs, albeit at a marginal rate, and a 7.8 percent-rise in selling and administrative expenses. Regarding their financial position as of June 30, 2023, however, Thai listed companies’ debt-to-equity ratio (D/E ratio) (excluding those in the Financials industry group) reduced to 1.53 times from 1.59 times recorded in the first half of 2022.

“Oil prices and gross refining margin plunged and then dealt a blow on sales and profits of energy and petrochemicals businesses. Total sales of non-energy and petrochemical businesses, especially tourism-related businesses including hotels, shops, restaurants and airlines, rose moderately by 4.5 percent. However, listed companies faced many challenges such as persistently high production costs, recovering sales activities, surging demand in the post COVID-19 and rising interest rates,” Manpong added.

For mai-listed companies, their combined first-half sales increased 1.3 percent to THB 95.18 billion. Their operating profits fell by 14.1 percent to THB 5.55 billion, weighed by a 0.3 percent drop in production costs to THB 71.01 billion and a 15 percent increase in selling and administrative expenses to THB 18.62 billion. Also, their net profits fell by 71.0 percent to THB 1.50 billion.