Country Group Development Public Company Limited (SET: CGD) has reported a significant widening of its net loss for the 2025 fiscal year, as the developer grapples with a real estate market downturn and a transition in its core sales strategy. According to its latest financial report, the Group’s net loss surged to THB 576 million, representing a sharp 287.9% increase compared to the THB 148.5 million loss recorded in 2024.
The primary driver behind this performance was a steep decline in total revenue, which plummeted 59.8% to THB 968.5 million, down from THB 2.41 billion the previous year. Management attributed this contraction primarily to a market downturn in the real estate sector.
Revenue from condominium sales, specifically from the flagship Four Seasons Private Residences (FSPR) Bangkok, fell 72% to THB 561.5 million. While CGD implemented a new pricing strategy aimed at margin optimization—pushing average prices to THB 575,000 per square meter—the resulting decline in sales volume heavily impacted the top line.
On the expense side, the Group successfully reduced total expenses by 46.0% to THB 1.06 billion. This was largely driven by a 72.3% drop in the Cost of Goods Sold (COGS), which aligned with lower sales. However, Selling and Administrative (SG&A) expenses remained relatively flat, decreasing only 3.7%.
The bottom line was further pressured by impairment losses (under TFRS 19) and increased litigation expenses related to legal proceedings against a project contractor. Consequently, the company swung from an operating profit in 2024 to an operating loss of THB 97.0 million.
Despite these headwinds, CGD maintained a stable interest-bearing debt to equity ratio of 1.0 times. Financial costs also decreased by 5.3% to THB 587.8 million due to the repayment of debentures. Looking ahead, the company is pivoting toward recurring income businesses, specifically the SPGS International School Bangkok, which is 90% complete and scheduled to open in August 2026.
