FSS International Investment Advisory Securities (FSSIA) reported that Maguro Group Public Company Limited (mai: MAGURO) posted a lower-than-expected net profit for the first quarter of 2026, missing forecasts by 10%. The underperformance was attributed mainly to a lower gross margin and higher operating expenses than anticipated.
MAGURO’s net profit in 1Q26 stood at THB 34 million, marking a 25.2% decline quarter-on-quarter but a moderate increase of 5.3% year-on-year. The quarterly drop is primarily seasonal, while the YoY growth remains muted at just 5.3%, despite a robust 35.2% surge in total revenue compared to the same period last year.
Total revenue for the quarter reached THB 561 million, down 6.0% QoQ but up substantially YoY. While Same Store Sales Growth (SSSG) slipped slightly by 0.8% YoY, the opening of 14 new branches over the year—expanding to 54 branches by end-1Q26—provided significant support for revenue growth.
The company’s gross margin dipped to 46.1%, lower than FSSIA’s estimate of 46.5%. This compares to 46.6% in 4Q25 and 48% in 1Q25. The margin pressure stemmed from higher raw material costs in certain brands and menu items, alongside ongoing promotional activities to attract customers.
Operating expenses continued to rise, jumping 36.4% YoY though easing by 2.4% QoQ. The growth in costs outpaced revenue, pushing SG&A to sales to 36.5%, up from 35.2% in the previous quarter and 36.2% in the same quarter last year. This increase was largely driven by costs from new branches and higher employee count.
MAGURO’s 1Q26 profit represents 20.7% of its full-year projection, aligning with historic trends where earnings tend to rise in the third and fourth quarters, coinciding with stepped-up branch expansion plans.
Despite maintaining a positive outlook on earnings for the remainder of the year, FSSIA warns that growth may moderate due to a high base from last year and lackluster consumer sentiment. Additionally, persistent increases in raw material costs could further weigh on profit growth, making it unlikely for earnings to match the high growth rates observed in previous years.
