Kasikorn Securities (KS) expressed pessimism on the third-quarter 2025 results of Thai Coconut Public Company Limited (SET: COCOCO) after the company posted a sharp earnings decline, driven primarily by lower coconut water revenues.
For the quarter ending September, COCOCO reported a normalized profit of THB 69 million, representing a 71% decrease year-on-year and a 3.8% decline quarter-on-quarter, mainly attributed to a significant drop in revenue, particularly from coconut water sales, which fell 26.3% from the previous year and 21% from the previous quarter. The profit figures also missed Kasikorn’s expectations by 38.3%.
Overall revenue for the quarter amounted to THB 1.75 billion, down 8.4% year-on-year and 2% quarter-on-quarter. The only areas of growth came from coconut milk and other business lines, which managed to post increases both annually and sequentially.
As per the analyst, COCOCO stated in its MD&A that the decline in coconut water revenue stemmed from sluggish orders in certain regions. The analyst believes this weakness likely occurred in Asia, as sales to the region dropped 26% year-on-year and 22% quarter-on-quarter.
On a more positive note, the company’s gross profit margin (GPM) recovered to 18.8% from the previous quarter, in line with a reduction in raw material costs.
Following these, Kasikorn Securities is currently reviewing its forecasts and recommendations for COCOCO and will provide revised guidance after meeting with company management and following the upcoming Opportunity Day event on December 1.
