Thai Union Achieves Remarkable Financial Milestones and Strategic Alliances

Thai Union Group PCL has reported a record-high gross profit margin of 19.7% in Q2 2025, alongside an impressive 18% growth in earnings per share. This performance is buoyed by a new strategic partnership with Mitsubishi Corporation.

Financial Highlights

• Gross Profit Margin (GPM) soared to an all-time quarterly high of 19.7% in Q2 and a first-half record of 19.3%.
• In Q2 2025, adjusted net profit climbed 13.2% year-on-year, reaching THB 1.5 billion, while H1 2025 adjusted net profit grew 11.2% YoY to THB 2.8 billion.
• Sales for Q2 2025 amounted to THB 33.4 billion, with H1 2025 sales totaling THB 63.2 billion, showcasing resilience amid challenging market conditions.
• The Board has approved an interim dividend of THB 0.35 per share, reflecting a 59% payout ratio.
• Mitsubishi Corporation plans to increase its stake in Thai Union from 6.19% to 20%, deepening a partnership that spans over three decades.

Thai Union’s latest financial results reveal a robust performance driven by remarkable cost management and strategic alignment with market demands. The second-quarter earnings per share saw an 18% boost, underscoring its commitment to profitability and shareholder value.

Quarterly Overview

For Q2 2025, Thai Union recorded sales of THB 33.4 billion, which reflects a slight 0.7% year-on-year decline in organic sales, alongside a 4.7% negative impact from foreign exchange fluctuations. While frozen product sales in the U.S. encountered weakness, segments such as Ambient, Feed, and PetCare demonstrated robust organic growth.

The impressive GPM of 19.7% in Q2, attributed to a favorable product mix and effective management of raw material costs, elevated the GPM for the first half of 2025 to 19.3%.

Excluding one-time costs associated with ongoing transformation efforts, adjusted net profit for Q2 climbed 13.2% YoY to THB 1.5 billion, while reported net profit stood at THB 1.3 billion. For the first half of the year, adjusted net profit increased by 11.2% to THB 2.8 billion, with a reported profit of THB 2.3 billion.

In alignment with its dedication to returning value to shareholders, the company announced an interim dividend of THB 0.35 per share.

CEO Insights

According to Thai Union CEO Thiraphong Chansiri:

“Our strategic transformation is yielding tangible results. We have become more agile and efficient, which has allowed us to achieve a significant increase in gross profit margin, solidifying our foundation for future growth.”

Business Segment Performance

• Ambient: Sales reached THB 16.6 billion, with a stable sales volume and an improved GPM of 22.0.
• Frozen: Sales totaled THB 10.0 billion, affected by reduced shrimp demand in the U.S., but the GPM remained robust at 11.7%.
• PetCare: Generated THB 4.4 billion in sales, propelled by a 10.0% year-on-year volume growth, achieving a GPM of 25.6%.
• Value-Added: Reported sales of THB 2.4 billion with a GPM of 26.3%, fueled by strong margins in supplementary ingredients.

Geopolitical Context and Strategic Moves

In light of the U.S. implementing a 19% reciprocal tariff on Thai imports sent after August 7, Thai Union is strategically optimizing its production footprint across 14 countries to mitigate challenges posed by tariffs. Facilities in Thailand, Ghana, and Seychelles benefit from competitive tariff rates, maintaining Filipino competitiveness against other exporting nations like Vietnam and Indonesia.

Shareholder Actions

The company successfully executed its fourth share repurchase program, acquiring 8.98% of its paid-up capital, reinforcing its commitment to shareholder returns.

Strategic Alliance with Mitsubishi Corporation

Thai Union and Mitsubishi Corporation announced a business alliance aimed at enhancing their longstanding relationship established in 1991. Mitsubishi will increase its stake to 20%, excluding treasury shares, further solidifying their partnership.

Thiraphong Chansiri emphasized:

“Our alliance with Mitsubishi is a sign of strength and shared vision for the seafood industry’s future. Together, we will accelerate growth, enhance competitiveness, and advocate for sustainability in our product offerings.”

This partnership is set to leverage both companies’ strengths to capitalize on the growing global seafood demand, focusing on key market expansion and consumer trends.

Commitment to Sustainability

Aligned with environmental, social, and governance (ESG) principles, both companies aim to advance responsible sourcing, labor welfare, and environmental stewardship through Thai Union’s SeaChange^® 2030 strategy.

For more information, visit the Thai Union Group site.