Reading between the lines in the 2Q26 Management Discussion and Analysis of Haad Thip Public Company Limited (HTC): Revenue up 8.7%. Net profit down 28.5%. And an over-80% sparkling share ambition that does not appear in 2Q26.
The numbers
Volume carries the top line
Haad Thip is a Coca-Cola bottler for Southern Thailand that has launched Monster energy drinks and is expanding its drinking water range. In 2Q26, revenue rose 8.7% YoY to Bt2,106m, driven by higher sales volume. Modern trade grew by 15.3%, and traditional trade by 8.2%.
Middle East costs squeeze margins
Gross margin fell to 41.7% from 42.7% in 2Q25. The MD&A attributes the decline to the conflict in the Middle East, which raised costs for energy, transportation, and packaging materials. SG&A rose 19.6% YoY to Bt790m, or 37.5% of revenue, up from 34.1%, driven by selling, employee, and fuel-related transport costs. Net profit fell 28.5% YoY to Bt102m, a net margin of 4.8% against 7.4% in 2Q25.
Cash falls after the May dividend
Cash and cash equivalents fell to Bt99m from Bt232m at the end of FY25. The MD&A attributes the fall in total assets, including cash, mainly to a Bt217m dividend paid in May 2026. Total liabilities fell 9.5% to Bt3,253m, mainly on lower short-term borrowings and trade payables.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a few things stand out.
The over-80% sparkling share reference does not appear in 2Q26
In its business overview, the 1Q26 MD&A listed the company’s medium-term ambitions. These included expanding its non-alcoholic ready-to-drink market share and sustaining its sparkling soft drink leadership “with a market share of over 80%.” The same filing reported a sparkling share of 77.3%. The 2Q26 overview keeps the leadership goal but drops the figure. It reports a sparkling share of 77.5%.
The high tourism season: forecast for 2Q26, placed in 1Q26
The 1Q26 MD&A explained first-quarter volume growth through private consumption, warmer weather, channel growth, and new products, with no reference to tourism. Its outlook expected modest market growth in 2Q26, supported by the high tourism season. The 2Q26 MD&A places the high season in the first three months of the year. It says tourism activity then moderated and consumer spending became more cautious, citing the Middle East conflict.
An affordability package strategy, and revenue growth below volume growth
In 1Q26, the MD&A credited the stable gross margin in part to effective price, pack, and channel mix management. Revenue rose 11.9%, driven by volume growth of 10.9%. In 2Q26, with consumption described as cautious, the MD&A lists an affordability-package strategy and expanded drinking-water products among measures to maintain volume. Volume rose 11.3% while revenue rose 8.7%. The filing does not comment on revenue per case or price changes.