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Thai companies are struggling: restructuring instead of profit explosion!
The article highlights current economic challenges in Bangkok, including declining corporate profits and a stagnant economy in 2025.
Thai companies are struggling: restructuring instead of profit explosion!
In Thailand, many companies are facing challenges that are reflected in the current company figures. The first nine months of 2025 have shown a significant decline in operating results compared to the previous year. Notably, Thai companies on the stock market reported sales of 12.4 trillion baht, down 6%. Total operating income fell to 844 billion baht, down 7.3% year-on-year. Despite these developments, the overall economy recorded a net profit of 887 billion baht, driven by one-off gains from mergers and restructuring, according to Bangkok Post.
Why these declines? The main reason is a slow economic recovery process, supported by a strong baht and cost pressures in various sectors. Especially in the third quarter, sales were weak in almost all areas, reflecting the high baht and weak domestic demand. While some sectors such as insurance and information and communications technology (ICT) recorded growth, the services sector suffered noticeably.
Industry-specific insights
As analysts point out, the challenges facing Thai companies are varied. Financial markets show that 602 of 817 listed companies - or 73.7% - reported net profits. The main drivers of this positive development were mergers, corporate restructuring and increased investments. Compared to the previous year, net profit increased by a significant 20.8%, which, according to Nation Thailand, was largely due to these unique circumstances.
There is a certain glimmer of hope: the sector excluding energy and petrochemicals only shows a decline in sales of 0.7%, while operating profit even increased by 1.2%. However, the economic reality remains bleak - 97% of the 222 companies in the Alternative Investment Market (MAI) reported a 5.6% drop in revenue and a 10.9% drop in net profit. The reason for this is ongoing economic weakness as well as higher provisions and investment write-offs that can be attributed to the fragile conditions.
Economic challenges and outlook
The macroeconomic situation shows that Thailand is facing an estimated GDP growth of around 2.0% in 2025. While tourism is stabilizing close to pre-crisis levels, a full recovery is not expected until 2026. High US tariffs on Thai exports are also contributing to depressed consumer sentiment, which is putting additional strain on household debt of around 90% of GDP. The inflation rate is estimated at around 0.7% for 2025, which does not ease economic pressure, informs WKO.
The outlook for the corporate landscape therefore remains mixed. While some sectors could benefit from the trend towards digital transformation and increasing demand for food and agricultural products, uncertainty remains due to currency volatility and the fragile domestic economy. Despite signs of a gradual recovery in the tourism sector, the road to more stable corporate profits could be rocky.