Analysis of Operating Result and Financial Position

(1) Business Overview of the Company and Its Subsidiaries.
1. In 2025, the overall snack market continues to grow at a steady rate. The overall market growth rate increased by 6.0 percent, while the fish snack market had a growth rate of 6.1 percent. In the pet food business, the market has shown consistent growth. In the coffee business, the priority is on producing high-quality organic coffee, alongside continuous improvement and development of coffee product formulas. However, the gross profit margin of the Company and its subsidiaries decreased from the previuos year due to higher production costs for the pet food business, resulting from an increase in raw material costs, labor costs, and fixed production cost per unit from the expansion of the second factory.
(2) Analysis of the Operating Results
1. The Company and its subsidiaries had profit for the year 2025 of 620.1 million baht, increasing from the same period of the previous year by 21.0 million baht or 3.5 percent. In the period, revenue from sales and services increased by 996.4 million baht or 20.3 percent, from an increase in production business of 865.5 million baht mainly from cat food production business and an increase in distribution business of 130.9 million baht. Gross profit amounted to 1,716.0 million baht, increasing from the previous year by 103.6 million baht or 6.4 percent. In the period, there was an unrealized gain from the measurement of the fair value of financial assets according to Financial Reporting Standard No. 9 on Financial Instruments of 5.8 million baht, consisting of a gain from the fair value measurement of foreign exchange contracts of 6.1 million baht and a loss from the fair value measurement of equity investment units of 0.3 million baht, while there was shown as an unrealized loss of 5.9 million baht in the previous year.
  
  Operating profits amounted to 744.9 million baht, increasing by 9.3 million baht or 1.3 percent from the previous year. Significant changes were as follows:
  
  Net revenue from sales and services in the period amounted to 5,914.5 million baht, increasing from the same period of the previous year of 996.4 million baht or 20.3 percent, consisting of:
  
  • Domestic sales amounted to 3,036.5 million baht, increasing by 154.4 million baht from the previous year, from an increase in consumer goods distribution business of 143.7 million baht, mainly from the Company’s products, and an increase in the food production business of 10.7 million baht, mainly from the coffee business.
  • International sales amounted to 2,878.0 million baht, increasing by 842.0 million baht from the previous year, from an increase in cat food production business of 854.8 million baht, meanwhile consumer product distribution business decreased by 12.8 million baht due to the cessation of sales of a subsidiary in the People's Republic of China.
  
  Gross profit margin was at 29.0 percent, a decrease of 3.8 percent from the same period of the previous year due to cat food production business that its production cost increased because raw materials, labor wages and fixed overhead costs per unit increased, due to its expansion of the second factory, and lower prices adjustment for customers exporting to the United States due to the negative impact of import tariffs increase policy.
  
  Other income in the period amounted to 63.6 million baht, an increase of 32.1 million baht or 102.1 percent from the same period of the previous year due to an increase in a gain from exchange rate of 18.3 million baht and an increase in compensation income from tax coupon of cat food business of 9.9 million baht.
  
  Sales and distribution expenses in the period amounted to 472.1 million baht, increasing by 45.2 million baht or 10.6 percent from the previous year. Such increase resulted from a decrease in advertising and promotion expenses of 47.7 million baht from the domestic distribution business group primarily conducted promotional campaigns under the "Taro Rak Loak Chok Deng" project", which ran from September 2025 to January 2026. Meanwhile, other selling expenses decreased by 2.5 million baht.
  
  Administrative expenses in the period amounted to 570.6 million baht, increasing by 92.6 million baht or 19.4 percent from the same period of the previous year, due to an increase in personnel expenses of 45.0 million baht, an increase in donation of 26.6 million baht from increasing profit of the previous year, additionally, a total amount of 19.3 million baht in investment promotion for community and social development of the Company and its subsidiaries during the period which was eligible for a corporate income tax exemption on profits derived from the promoted business at a rate of 200 percent of the said investment, and an increase in other administrative expenses of 1.7 million baht.
  
  Corporate income tax in the period amounted to 116.5 million baht, a decrease of 14.0 million baht or 10.8 percent from the same period of the previous year due to the utilization of investment promotion benefit regarding tax exemption of 200 percent of 38.5 million baht investments for community and social development, which being eligible from the fourth quarter of 2025 onwards.
(3) Analysis of the Financial Position
1. Assets
  Total assets of the Company and its subsidiaries as at 31 December 2025 amounted to 3,308.5 million baht, increasing by 207.9 million baht from the period at the end of 2025. Key significant changes were as
  
  Cash and cash equivalents decreased by 26.4 million baht, resulting from a decrease in the Company's cash of 25.9 million baht and a decrease in subsidiaries' cash of 0.5 million baht.
  
  Trade and other receivables increased by 194.8 million baht, from an increase in trade and other receivables of the export cat food business of 147.2 million baht, the Company's of 41.1 million baht from high revenue in the fourth quarter, and other subsidiaries' of 6.5 million baht.
  
  Inventories increased by 55.1 million baht, from an increase in raw materials and packaging materials for cat food production of 78.3 million baht, a decrease in the coffee business of 34.0 million baht from sales of coffee beans and an increase in finished goods, goods in process, and packaging materials of the Company and other subsidiaries of 10.8 million baht.
  
  Other current financial assets decreased by 241.4 million baht from a decrease in the Company and its subsidiaries' an investment in the unit trust - debt and equity funds of 247.5 million baht, while having an increase in receivables from foreign exchange contract of the cat food production business of 6.1 million baht.
  
  The investment promotion fund for community and social development in education is a fund established to support community and social development in education that the Company and its subsidiary (P.M. Food Co., Ltd.) received tax benefits under the investment promotion measures, granting them a 200 percent exemption from corporate income tax on investment income for a period of 3 years from the date of income generation after receiving the investment promotion certificate. The Company and its subsidiary began to utilize this tax exemption in the fourth quarter of 2025. At the end of the period, the remaining balance in the investment promotion fund for community and social development in education of the Company and its subsidiary amounted to 30.1 million baht.
  
  Other non-current assets increased by 62.0 million baht due to revenue department receivable and accrued compensation from the cat food business of 42.1 million baht from export tax refunds, an increase in prepaid expenses of 11.2 million baht, and an increase in prepaid income tax of 5.4 million baht, mainly from the Company.
  
  Property, plant and equipment had net increase of 141.5 million baht from an increase of investment in assets of 252.0 million baht, which were machinery and construction to expand the cat food factory of 130.1 million baht, machinery and Taro factory buildings of 115.6 million baht, lease hold improvements and equipments for the coffee business of 5.2 million baht. During the year, depreciation was recognized in the amount of 109.8 million baht.
  
  Right of use assets decreased by 13.9 million baht, from the recognition of depreciation during the year. The decrease in prepaid rent was the amortization over the term of the lease of the Company.
  
  Liabilities
  
  The liabilities of the Company and its subsidiaries amounted to 1,506.1 million baht, increasing by 172.9 million baht from the previous year due to the following significant changes:
  Trade and other payables increased by 90.1 million baht, resulting from an increase in trade and other payables of the Company of 42.7 million baht, the cat food production business of 35.4 million baht, the Taro production business of 13.3 million baht, and a decrease in trade and other payables of the subsidiaries of 1.3 million baht.
  
  Long-term loans increased by 109.7 million baht (including the portion of long-term loans due within one year and accrued interest payable). During the year, long-term loans increased by 161.9 million baht from loans for plant expansion and purchase of machinery of 2 subsidiaries. And, during the year, long-term loans were repaid according to the contract of 52.5 million baht.
  
  Lease liabilities decreased by 13.4 million baht, mainly from rental payments under the lease contract.
  
  Long-term employee benefit reserves increased by 31.9 million baht from the recognition of long-term employee benefit obligations during the year and the review of the calculation of new long-term employee benefits at the end of the year 2025 of the Company and its subsidiaries.
  
  Income tax payable decreased by 40.0 million baht due to the calculation of corporate income tax for the year 2025.
  
  Shareholders’ Equity
  Shareholders' equity as of December 31, 2025 amounted to 1,802.4 million baht, increasing by 35.0 million baht from the previous year due to an increase of unappropriated retained earnings of the Company and the subsidiaries of 34.7 million baht, while the subsidiary in the People's Republic of China had an exchange rate difference from the translation of financial statements in foreign currency of 2.1 million baht, and the loss of non-controlling interests of the subsidiary had increased of 1.8 million baht.
(4) Analysis of the Cash Flow Statement
1. The Company and its subsidiaries had cash flow and cash equivalents as of 31 December, 2025 in the amount of 65.0 million baht, decreasing from the same period of the previous year by 26.4 million baht from the following significant changes:
  • Net cash from operating activities of 2025 was 474.7 million baht.
  • Net cash flow used in investing activities amounted to 0.3 million baht from an investment in the unit trust net of 249.7 million baht, additional investments in machinery, equipment and building improvements, net of 252.0 million baht, cash received from interest income of 0.9 million baht, and cash received from sale of assets of 1.1 million baht. .
  • Net cash flow used in financing activities amounted to 502.9 million baht, from dividend payment in the amount of 574.8 million baht, repayment of the debt according to the lease agreement in the amout of 29.9 million baht, interest expenses in the amount of 7.8 million baht, and an increase in long-term loans of the subsidiaries of 109.6 million baht during the year.