Mr. Ong-art Kittikhunchai, Chief Executive Officer of Sunsweet Public Company Limited, or SUN, presented the business overview at the Opportunity Day event. Second-quarter 2026 sales revenue was 848.7 million baht, down 11.8 percent from the same period last year, with net profit of 5.1 million baht, down 94.2 percent year-on-year. The company faced pressure from a stronger baht, price competition in export markets, and higher energy, logistics, and packaging costs due to the Middle East conflict, which affected shipments to markets accounting for about 8 to 10 percent of revenue and caused some orders to be delayed. However, customer demand remains intact, with export value down about 19.5 percent year-on-year but volume down only about 1.9 percent, reflecting that the revenue decline was mainly due to exchange rates and delivery constraints rather than weakening demand. For the first six months of 2026, SUN posted total sales revenue of 1.75 billion baht. The company began to see improved internal cost management in the second quarter compared to the first, driven by continuous production and factory cost controls, although it still faced logistics costs and derivative losses of about 36 million baht in the first half. Currently, SUN divides revenue into two main groups: the sweet corn business, which accounts for about 70 to 80 percent of total revenue, and the ready-to-eat, or RTE, segment, whose revenue share has steadily increased to over 20 percent of total revenue, focusing on the domestic market and convenience store channels. The company now markets 17 products, spanning ready-to-eat grains, Thai snacks, and ready-to-cook, or RTC, items, which have been well received, with plans to add more products in the future. In the global market, the worldwide sweet corn trade is valued at approximately 61.8 billion baht. Thailand is the second-largest exporter with a share of about 16 percent, behind Hungary at 18 percent and ahead of China at 14 percent. SUN holds a global market share of about 4.8 percent, worth around 2.99 billion baht. The company exports to 54 countries with over 200 customers. Asia is the main market, accounting for more than 50 percent of total exports, with Japan representing the largest share at over 30 percent, followed by Taiwan and South Korea. Europe accounts for about 10 percent, and the company also serves the Middle East, Australia, New Zealand, and the Americas. For the third quarter of 2026, the company is prioritizing the recovery of gross margin and net profit back to normal levels by cutting unnecessary costs, improving production line productivity, and deploying automation, AI, and technology to enhance efficiency, reduce costs, and raise product quality. At the same time, SUN has begun gradually negotiating new order prices to reflect higher costs, with results expected from the third quarter through the fourth quarter, after previously holding prices under existing contracts to maintain customer and partner relationships during the period of external cost pressures. Another key strategy is accelerating the expansion of RTE, RTC, chilled, and fresh food products, which are higher value-added and offer better margin opportunities than basic products. In the second half of the year, the company plans to launch and develop more than 10 new products, or about 3 to 4 per quarter, including new products for existing markets, new products for new markets, and line extensions. SUN is also developing RTE products for international markets, aiming to extend shelf life to about 6 months to 1 year to support international shipping, with some items already entering production and delivery to customers. In overseas markets, the company is diversifying its customer base to mitigate the impact from the Middle East, having recently entered Indonesia and the Philippines and begun attracting interest from new customers for both sweet corn and ready-to-eat products. Looking ahead, SUN plans to participate in a trade show in Australia from late August to early September to expand frozen product sales to Australia and New Zealand, followed by marketing activities in Hong Kong in late September. In October, the company will join a trade fair in France, a key platform for meeting buyers from Europe, Asia, Africa, and the Americas, as well as tracking consumption trends, production technology, and innovations. The year's market expansion plan will conclude in Ho Chi Minh City, Vietnam, with a focus on pushing ready-to-eat products into a market with a growing population and purchasing power. Regarding the Tetra Recart Sweet Corn investment project, which upgrades sweet corn production to a new packaging format, construction of the building and installation of machinery and automation systems are underway, with the company targeting system testing and product launch in the fourth quarter of 2026. Additionally, SUN is investing in frozen production line efficiency through a 300-kilogram-per-hour freezer with thermoforming and cooling systems to support RTE and value-added product capacity expansion. For the renewable energy project, the company expects the solar rooftop installation to be completed and operational within the next 3 to 4 months, helping to reduce energy costs and carbon emissions. Mr. Ong-art added that the period from the fourth quarter through the first quarter of next year is typically a high season for orders and consumption, so the company expects sales and profitability to gradually recover toward year-end, driven by new order pricing, cost reduction measures, production efficiency gains, and a higher share of high-margin products. Meanwhile, if the Middle East conflict eases and logistics normalize, the company expects orders from that market to potentially accelerate, as customer demand remains, with the Middle East having previously contributed nearly 10 percent of SUN's revenue. For the full-year 2026 target, SUN maintains its revenue goal of 4 to 4.5 billion baht, supported by sustaining the sweet corn business, expanding export markets, launching new products, commencing the Tetra Recart project, and increasing the share of RTE-RTC and value-added products. In the medium term, the company targets revenue growth to 5 to 6 billion baht by 2028, driven by capacity expansion, international customer base growth, new product development, and internal factory efficiency improvements, with investment decisions based on clear potential to increase revenue, reduce costs, and deliver returns. SUN continues its policy of paying dividends of no less than 50 percent of net profit after legal reserves, subject to periodic performance, while maintaining its core business and building new growth engines from ready-to-eat and value-added products to achieve sustainable long-term growth.
Sunsweet Public Company LimitedStronger baht and Middle East conflict pressures, with net profit down 94.2% YoY.
