Thai listed firms’ net profits drop 3.7%

Thai listed firms registered a 3.7% fall in net profit in the previous year, impacted primarily by a 31.7% decline in oil and petrochemical sector firms’ earnings although tourism, consumption and services accelerated growth, according to the Stock Exchange of Thailand (SET).

SET president Asadej Kongsiri said the 807 listed companies that have already submitted their annual financial reports accounted for nearly 99% of the 816 companies listed on the main bourse and the Market for Alternative Investment (MAI). Of these, 604 firms or 75% registered net profits.

Combined sales of SET-listed companies increased 3.1% from the previous year to 17.5 trillion baht (US$516 billion). Increased production costs and higher selling, general and administrative (SG&A) highlighted a 1.1% fall in core operating profit to 1.56 trillion baht, and a 3.7% drop in net profit to 859 billion baht.

Apart from the energy and petrochemicals sector, companies listed on the stock exchange reported growth in sales, core operating profits and net profits.

In terms of the companies’ financial position, Thai listed firms other than the financial industry posted a debt-to-equity ratio of 1.49 times as of Dec 31, 2024, compared with 1.52 times a year earlier.

“The continued upward trajectory of tourism in Thailand has spurred the development of listed companies covering tourism-related and consumption and service industries, comprising food and beverages, consumer products, retail and hospitality, aviation, healthcare, telecom, and commercial property rental,” said Mr Asadej.

Moreover, the industrial estate continued to boom, spurred by a jump in demand in the Eastern Economic Corridor in line with production base relocation and record promotions submitted to the Board of Investment.

While high interest rates benefited the financial sector, declining oil prices and gross refinery margin last year weighed on the profitability of the oil and petrochemical industry and the net profits of listed companies, he added.

MAI-listed companies continued to expand last year, recording total sales amounting to 209 billion baht, up 3.8% year-on-year. With tight controls on production costs and SG&A expenses, they generated an operating profit of approximately 15 billion baht and a net profit of 5.55 billion, which was up 27.9% and 5.5%, respectively.