GFPT Public Company Limited (SET: GFPT), revealed that for early 2026, the company has set a target of total revenue growth of 2-3% from last year’s total revenue of THB 19,205.50 million, driven by the recovery of international markets.
However, at the end of February, the outbreak of the Middle East war may have an indirect impact on the revenue target. Currently, GFPT neither exports to nor imports from Middle Eastern countries and does not transport goods through the Strait of Hormuz; thus, there is no direct impact from the situation.
GFPT stated that the Iran-Israel war, as well as rising energy costs, does not directly affect the company as its current energy costs stand at only 2-3% of production costs. As such, any impact from such events will not be significant. However, the indirect effect may cause customers in the UK and Europe to delay their orders to monitor the situation. This year, these countries were expected to increase orders to replenish their reduced stock following last year’s import cut.
Furthermore, selling and administrative expenses (SG&A) are likely to rise, as overall shipping rates have surged. Even though GFPT’s goods do not pass through the Strait of Hormuz, higher demand is pushing up transport costs, and affecting the company’s bottom line. Therefore, this year the company aims to maintain its position, assessing that in the worst-case scenario, the company’s performance in 2026 may remain flat compared to last year, the company added.
In 2026, GFPT will maintain its gross profit margin at 15-16%, compared to 16.35% last year, and keep financial costs at 1.5-2.5%, as well as sustain the effective tax rate at 10-15%. The company has set a total investment budget for 2026 at THB 1 – 1.2 billion, mainly for farm expansion and factory investments to increase production capacity, with funding primarily from operating cash flow.
In terms of operations for 1Q26, results are expected to decline both year-on-year and quarter-on-quarter, as 1Q25 had a high base, and 1Q26 was affected by the Middle East war, which may potentially heighten costs. The impact is still being monitored. Excluding the year-on-year comparison, the performance remains normal because Q1 is typically the low season, with gradual improvement in Q2 and peak performance expected in Q3.
GFPT added that from 2027 onwards, the company’s production capacity will increase by 150,000 birds per day due to a new chicken slaughterhouse completing and commencing operations. This will boost production, reduce unit costs, and after completion of the new slaughterhouse, the company plans to invest in a new cooked chicken processing plant, expected to be operational by 2029. This will further raise the export capacity of cooked processed chicken products compared to the present.
