Good afternoon, everyone. It's my pleasure to welcome you on our webcast. My name is Veera Titayangkaruvong. I am the Manager of GFPT. First of all, I would like to thank you for your interest in GFPT. Turning to our agenda on slide three, I will briefly introduce GFPT Group business and explain about the vertical integrated chicken production and financial results in the second quarter of this year. I will discuss about the Thai broiler industry outlook and what we can expect in this year. GFPT aims to be carbon neutral organization by 2030 and achieve net zero carbon emission by 2050. GFPT strives to be a leading chicken meat exporter with its fully vertical integrated chicken production. GFPT supported Sustainable Development Goals, SDG, which was incorporated in the company's objectives and operations. For example, SDG 2, zero hunger. SDG 4, quality education. SDG 5, gender equality.
SDG 6, clean water and sanitation. SDG 8, decent work and economic growth. SDG 10, reduced inequality. SDG 11, sustainable cities and communities. SDG 12, responsible consumption and production. SDG 13, climate action. SDG 16, peace, justice, and strong institutions. Next will be GFPT's awards. For various award and achievements of GFPT in 2025, including SET ESG rating with A A score. We are also certified to be a member of CAC for anti-corruption policy. Our latest ESG rating was 5 CG symbols excellent for seven consecutive years. We also achieved Best IR, Best CEO, and Best CFO from IAA Awards for Listed Companies 2025 in agribusiness. Next will be GFPT profile. GFPT is a vertically integrated chicken production starting from feed mill, grandparent breeder farm, breeder farm, broiler farm, chicken processing plant, and further processing factory.
GFPT is listed in the Stock Exchange of Thailand under agribusiness. Last year's CG score was 5 CG symbol excellent. Our share price at the end of July was THB 9.8 per share. Average stock price in the second quarter of this year was THB 8.8 per share. The 52-week highest share price was THB 11, and the lowest share price was THB 8.5 per share. We have outstanding share at 1.25 billion shares and THB 1 per share. Our market cap is about THB 12.3 billion in free float. About 65%, we also have the foreign shareholder portion, about 9.9%. Our dividend policy, we pay not more than 50% of the profit from separate financial performance after all deduction.
The current shareholding structure, Sirimongkolkasem family being a major shareholder, holds about 49.9%, 32.6% local individuals, 7.6% local funds, 9.3% foreign institutions, and only 0.6% foreign individuals. Next will be the group structure of GFPT Group. GFPT Group structure is quite simple. GFPT is a parent company of the group which operates primary plant and further processing factory to produce fresh chicken meat and fully cooked products. GFPT Group consists of five subsidiaries and two joint ventures. Each subsidiary handle different aspect of the vertical integration. GFPT holds 49% on GFN and McKey, so we use equity method to take 49% of the JV performance in our profit and loss. Next will be the GFPT fully vertical integrated chicken production.
Starting at the feed mill on the left-hand side, we currently have two feed mill facilities. KT1 produce animal feed and aquatic feed for domestic market. KT2 produce chicken feed for internal use only. The major feed materials are corn and soybean, in which corn are sourced locally, and soybean and soybean meal are imported from overseas. For our chicken farm operation, we have three generations of chicken farms, being grand parent breeder farm, parent breeder farm, and broiler farm. We import grand parent day-old chick from overseas. Grand parent breeder and parent breeder raising cycle about 60- 65 weeks, while broiler are raised for only 40- 42 days to reach the target weight. Our chicken are raised in the closed evaporative system with strict biosecurity. We highly concerned about animal welfare and animal enrichment.
We raise broiler in sustainable way with a minimal impact on the environment. Our constraint is we are 100% own farm policy, so it means that we have no contract farming to make our customer trust in our chicken meat quality. All of our broiler are sold to GFPT, the parent company, and GFN, the second joint venture for chicken meat processing and producing cooked chicken product for export. At primary plant, chicken meat will be processed into main product and by-product. The main product consists of chicken breast, chicken legs, chicken wing, and chicken paws for export to international markets, while the by-product are carcass, intestine, giblet, and other are sold for the domestic market. At further processing plant, the main chicken meat is processed as a fully cooked product such as Chicken Nuggets, Crispy Chicken Patty, Chicken Karaage, and Chicken Burgers. Next will be GFPT timeline.
GFPT Group has been in poultry business in Thailand for 45 years. GFPT was established in 1981 to operate chicken processing under BOI privilege for exporting fresh chicken meat. During 1990s, we became a fully vertical integration by having our own parent breeder farms, broiler farm, feed mills, and sausage plant. In 1992, we listed in the Stock Exchange of Thailand under symbol GFPT. One year later, in 1993, we joint venture with the Keystone Foods Corporation, the U.S.-based company, to set up McKey Food Services (Thailand) Ltd., to produce Chicken Nuggets and Chicken Patty for export to McDonald's in Asia Pacific region, including Japan and Singapore. 2003, we did another backward integration by having grandparent breeder farms. 2008, we set up a new feed mill plant in Chonburi province called KT2 to produce chicken feed for internal use only.
In the same year, we also announced the second joint venture with the Nichirei Foods Inc., the Japanese-based company, to set up GFPT Nichirei (Thailand) Company Limited or GFN. The operation of GFN and GFPT is quite simple. GFN operates both slaughterhouse and further processing plant and mainly export processed chicken product to Japan and other international countries. In 2010, we did stock split from THB 10 to THB 1 per share, and we just expand the sausage production capacity in 2017 and focus on producing Chicken Sausage. McKey also finished the new construction of the further processing plant in Chonburi province, and currently GFPT is constructing new slaughterhouse at Chonburi province located near the new McKey further processing plant with the production capacity about 150,000 birds per day for the full capacity. Next will be GFPT Group expansion plan.
The expansion plan in the future for the next three to five years consists of the broiler farm raising capacity to reach 340,000 birds per day and also the new primary plant with the capacity about 150,000 birds per day. The last one will be GFPT further processing plant with the cook capacity about 30,000 metric tons per year. However, the expansion plan and investment budget can be adjusted depending on the change in the market condition and future competition. Next will be GFPT product line. Our product line consists of three categories, feed, farm, and food. For the feed business, we have various animal feed products such as swine feed, layer hen feed, duck feed, and cow feed. For the aquatic feed, consists of fish feed, shrimp feed, and frog feed. All feed products are sold to the farmer, animal raiser, and feed wholesalers in Thailand.
Moving to the farm business, we sell parent day-old chick and broiler day-old chick to chicken farmers. Live broiler are sold directly to GFPT, the parent company, and GFN only. We also start to sell Cage Free Eggs since 2020. The last one will be the food business. Fresh chicken meat and parts can be export as fresh frozen chicken and also sold in the domestic market, such as wholesale market, OEM factories, and QSR. The cooked chicken products are export to international countries, mainly to Japan, U.K., EU. The processed food such as Chicken Sausage are sold in the domestic market. Next will be the snapshot in 2025. GFPT consolidated revenue was THB 18.8 billion, decreased by 2% year-on-year. Our consolidated revenue breakdown by segment are 48% food, 35% farm, and 17% feed.
The revenue breakdown by product consists of 23% chicken direct export, the dark blue one, while the indirect export that we sell fresh chicken to OEM factory in Thailand like McKey for 10%, 11% in terms of chicken by-product sales in the domestic market, and 4% for the processed food, such as Chicken Sausage and meatball for the domestic market. For the feed business, consists of 6% animal feed, 3% fish feed, and 8% shrimp feed. The last one will be farm business. 28% live chicken sales to GFN, and only 7% day-old chicks sale to outside. Our export revenue is about 23% and 77% domestic sales. In term of the revenue breakdown by currency, we sell in term of U.S. dollar about 20%, and the rest, 80% in term of Thai baht currency. Next will be GFPT market position in 2025.
GFPT ranked number two in terms of export. GFPT, GFN, and McKey all together export 12% of the Thai chicken export. While we produce chicken only 6%, ranked number seven in term of Thai chicken production. GFPT Group export 51% to Japan, 26% to U.K., and 12% to EU, 6% Singapore, Malaysia 4%, China 4%, and 3% for the other countries. We mainly export in term of the cooked products, 86%, and only 14% in term of the raw chicken. Next will be the financial results in the second quarter of this year. GFPT consolidated revenue in the second quarter of this year was THB 4.648 billion, decreased by THB 233 million or 4.8% decrease year-on-year, mostly from the revenue from the food segment, from lower revenue from export cut-up chicken and also the indirect export of the chicken meat.
The consolidated revenue from sales in the second quarter of this year consists of the food segment, 48%, farm segment about 36%, and feed segment about 16%. In the second quarter of this year, the revenue from food segment was THB 2.217 billion , decreased by THB 109 million or 4.7% year-on-year, from the lower revenue from export of chicken products and from lower sales volume of the total export. The company total export in the second quarter of this year was 8,100 metric tons, dropped by 400 metric tons or 4.7% year-on-year, from decreasing in export volume of the raw chicken to China. Revenue from farm was THB 1,668 million , decreased by THB 90 million or 5.1% year-on-year, from lower revenue from selling day-old chick from lower sales volume and selling price of the day-old chick.
Revenue from feed sales was THB 764 million , decreased by THB 34 million or 4.3% year-on-year, from lower revenue from selling fish feed from its lower sales volume. Next will be the comparison between the second quarter of this year and second quarter of last year. The total consolidated revenue was THB 4.648 million , decreased by THB 233 million or 4.8% year-on-year, while the cost of goods sold was THB 3.862 billion , decreased by THB 203 million or 5% year-on-year, while the gross profit was THB 786 million , dropped by THB 30 million or 3.7% year-on-year, mainly from the lower revenue from sales.
The cost of sale in the second quarter of this year contributes about 83.1% of revenue from sales, slightly decreased from 83.3% from last year, while the gross profit margin contributes about 16.9% in the second quarter of this year, slightly increased from 16.7% from last year. The other income in the second quarter of this year was THB 101 million , increased by THB 9.6 million or 10.5% increase year-on-year, from higher selling miscellaneous items and spare parts, while the SG&A expense in the second quarter of this year equal to THB 349 million , increased by THB 5 million or 1.5% year-on-year, since higher fuel cost and SG&A percentage increased from 7.1% in the second quarter last year to 7.5% in the second quarter of this year.
The profit from associated was THB 135 million in the second quarter of this year, decreased by THB 62 million or 31% decrease year-on-year from the profit contribution from GFN was only THB 3.5 million , decreased by THB 85 million or 94% drop year-on-year, from the lower selling price of the domestic sales of chicken parts and chicken by-products. While the profit contribution from McKey was THB 132 million , decreased by THB 3 million or 2.5% year-on-year. The interest expense of the group in the second quarter of this year equal to THB 21 million , decreased by THB 4.8 million or 18.5% year-on-year, from lower interest expense from the outstanding loan decrease. The income tax expense in the second quarter of this year was THB 67 million , decreased by THB 1 million or 1.7% year-on-year, from the lower corporate income tax.
Finally, the consolidated net profit in the second quarter of this year was THB 601 million, decreased by THB 41.5 million or 6.5% year-on-year, from the lower revenue from sales and lower share profit from associated companies. The net profit margin decreased from 13.2% in the second quarter of last year to 12.9% in the second quarter of this year. Next will be the comparison between the six months of this year and six months of last year in terms of consolidated income statement.
The total revenue for the six months of this year equal to THB 8.916 billion, decreased by THB 650 million or 6.5% year-on-year, while the cost of goods sold in the six months of this year was THB 7.505 billion, decreased by THB 557 million or 6.9% year-on-year, while the gross profit was THB 1.411 billion in the six months of this year, decreased by THB 57 million or 3.9% from last year. The cost of sale for the six months of this year contributes about 84.2% of the revenue from sales, decreased from 84.6% from last year, while the gross profit margin contributes about 15.8% in the six months of this year, slightly increased from 15.4% from the six months of last year.
The other income six months this year equal to THB 184 million, increased by THB 10 million or 5.7% from last year, from the higher selling miscellaneous item and spare parts. SG&A expense in the six months of this year equal to THB 658 million, decreased by THB 51 million or 7.2% year-on-year, from lower freight cost from lower sales volume of the chicken export. The SG&A percentage decreased from 7.44% six months last year to 7.38% from the six months in this year. The profit from associated was THB 283 million, decreased by THB 236 million or 45.5% year-on-year from the lower profit contribution from GFN. Interest expense in six months of this year was THB 43 million, decreased by THB 10 million or 19.2% year-on-year from lower interest expense as the outstanding loan decreased.
Income tax expense in six months of this year was THB 103 million, increased by THB 0.5 million or 0.5% year-on-year from the lower deferred tax revenue. Finally, the consolidated net profit in the six months of this year equal to THB 1.118 billion, decreased by THB 163 million or 12.7% year-on-year from the lower revenue from sales and lower share of profit contribution from associated company. The net profit margin decreased from 13.44% six months last year to 12.54% six months in this year. Next will be the financial ratio in term of the profitability. The gross profit margin increased from 16.7% in the second quarter of last year to 16.9% in the second quarter of this year. The EBITDA margin in second quarter of this year is quite similar to second quarter of last year about 24.1%.
The net profit margin decreased from 13.2% second quarter of last year to 12.9% in the second quarter of this year. The average selling exchange rate equal to THB 32.6 per U.S. dollar in the second quarter of this year. Earnings per share in the second quarter of this year equal to THB 0.48 per share and dividend payment was THB 0.2 per share or 10.3% dividend payout ratio. The expected ROA in this year was 8.1%, and the expected ROE in this year was 10.5% that we calculate from the information of the six month of information of 2026. Next will be the balance sheet. The total asset of GFPT Group equal to THB 28.719 billion increased by THB 855 million or 3.1% from last year from the increasing in cash and cash equivalent by THB 950 million .
The GFPT Group total liability equal to THB 6.151 billion decreased by THB 15 million or 0.3% from last year from the short-term loans from financial institution decreased by THB 150 million and the shareholders' equity was to THB 22.567 billion increased by THB 871 million or 4% increase year-on-year. Next will be the cash flow activity in the second quarter of this year. The consolidated in the second quarter of this year was THB 692 million , 4.6% drop year-on-year, as well as the consolidated EBITDA was THB 1.121 billion , 4.7% drop year-on-year. The cash flow activity in the second quarter of this year, we have net cash received from operating activity, THB 1.752 billion and net cash used in investing activity, THB 246 million , mainly in the fixed asset expansion and also the grandparent and parent breeder farms.
The net cash used in financing activity about THB 555 million . So the cash ending at the end of June was THB 4.480 billion increased by THB 1.296 billion from previous year. The book value increased from THB 17.3 per share in 2025 to THB 18 per share at the end of June in this year. Next will be the interest-bearing debt. At the end of June this year, the company has a total liability of THB 6.15 billion , comprising of the non-interest bearing debt in amount of THB 2.55 billion and interest bearing debt in amount of THB 3.6 billion . The interest bearing debt consists of the short-term loans, THB 130 million and long-term loans, THB 3.470 billion . All loans in Thai baht currency. We have no exposure in the foreign currency borrowing, and the debt -to -equity ratio was only 0.27x .
Next will be the capital expenditures. The investment budget in this year is about THB 1 billion- THB 1.2 billion , mainly for the broiler farm, breeder farm expansion, and also further processing expansion. We plan to increase the number of the chicken about 10% a year or equal to 20,000 birds per every year. However, the broiler farm expansion plan can be adjusted due to the economic and industry situation. Next will be the global broiler meat market. In 2025, Thailand ranked number four in terms of chicken export and ranked number seven in terms of chicken production in the global market. Thailand exports product to Japan 39%, U.K. 16%, EU 14%, China 7%, and other countries 24%, and we mainly export in terms of cooked products 53% and 47% in terms of the raw chicken. Next will be the history of the 50 years of Thai chicken export.
Thai chicken meat export has been very strong since 1973, but after the bird flu outbreak in the beginning of 2004, Thai chicken industry is still strong by switching from export fresh chicken meat to fully cooked chicken product. After the major importers such as EU and Japan lift ban from fresh frozen chicken meat from Thailand since 2012, Thai chicken meat export stream has been very strong. In 2025, Thai chicken meat export break historical high with more than 1 million and 1.3 million metric tons or equal to THB 165 billion. Next will be the global broiler meat market. For the global chicken production, U.S. is the market leader, followed by China, Brazil, and EU, and Thailand ranked number seven. In terms of the global chicken export, Brazil is the market leader, followed by U.S. and EU.
Thailand ranked number four, and in terms of the global chicken meat import, Japan is the market leader, followed by Mexico, U.K., and EU. Next will be the commodity price. Slide 33 provides statistical data on selected commodity price for our reference. The corn price in the second quarter of this year, about THB 12.2 per kilogram, increased from THB 10.8 per kilogram in the second quarter of last year, as well as the soybean meal price in the second quarter of this year was THB 15.4 per kilogram, slightly increased from THB 15.2 per kilogram in the second quarter of last year.
The average broiler price in the second quarter of this year was THB 37- THB 38 per kilogram, decreased from THB 40 per kilogram in the second quarter of last year, while the day-old chick price in the second quarter of this year was THB 16.2 per chick, decreased from THB 18.5 per chick in the second quarter of last year. The export price in the second quarter of this year consists of the Japan export price equal to $4,700 per metric ton, while the export price to EU was $4,400 per metric ton. Next will be the supporting and risk factor in this year. Starting from the supporting factor consists of the global recognized food safety standard. With the trust, compartmentalization, and traceability system ensure disease control.
The growing poultry demand, rising population, and economic boost demand from affordable chicken, and also the cooked and processed chicken meat market growth, rising demand for ready-to-eat and convenience food, and with the strong export competitiveness. Thailand leads in the processed chicken export with high production standard, with the lower production cost, enhanced price competitiveness for producer. The last one will be the economic and tourist recovery, which boost the food service growth, especially restaurant fast food and street food. Moving to the risk factor consists of the animal disease outbreak and hygiene risk. The global bird flu outbreak may reduce grandparent and parent supply, limiting the broiler production.
The global market competition, such as Brazil and U.S., out-compete with the lower feed material cost and the cost volatility and rising expense, like the weather risk, like El Niño and La Niña may raise the feed cost despite the expected price decline. The non-tariff measurement, like the labor and environmental standard, may limit the Thailand poultry competitiveness. The oversupply risk increase the pork production may lead the market oversupply, causing the price decline with the lower producer profit. The geopolitical risk and trade impact, like the Russia and Ukraine may raise the feed cost. Next will be the guidance in this year. Our management provide 2026 guidance with no growth from 2025 sales, and we have the anticipated GP margin about 15%-16%, and SG&A percent expense should be around 7%-8% of the revenue from sales.
The other ratio, such as the financial cost and effective tax rate, will be similar to 2025, and the CapEx about THB 1 billion-THB 1.2 billion for the fixed asset investments. The last topic will be the key statistic and show the relating to our core business. The chicken meat and feed business contribute about 70% of the consolidated revenue of GFPT Group. In the second quarter of this year, export volume decreased by 5%, mainly from decreasing in export volume of the raw chicken to China. Indirect export volume to McKey in the second quarter of this year also decreased by 13% year-on-year. The domestic sales volume in the second quarter of this year increased by 7%. Moving to the domestic feed market.
Sales volume of animal feed decreased by 22% year-on-year, as well as the fish feed sales volume decreased by 34% year-on-year, and the shrimp feed sales volume increased by 3% comparing to the second quarter of last year. We would like to thank you to join our webcast today. If anyone would like to have more information about GFPT Group, including the latest annual report and results presentation, please visit our website, www.gfpt.co.th, or contact our IR department. Thank you again and see you next time.