Thai Union Reports Sales Decline but Maintains Record Profitability in Q1 2025

Thai group Thai Union PCL reported a 10.3% drop in sales during the first quarter of the year, reaching 29.8 billion baht (THB). The decrease was due to the strengthening of the baht against key currencies, and lower performance in the canned, frozen, and value-added product divisions.

Despite the complex environment, the company improved its gross margin to 18.8%, the highest for a first quarter. Net profit, excluding transformation costs linked to its 2030 strategic roadmap, increased 8.9% year-on-year, reaching THB 1.3 billion. Reported net profit was 1 billion.

CEO Thiraphong Chansiri highlighted that the company continues to strengthen its core businesses and invest for long-term growth. The net debt to equity ratio remained at a healthy 1.0x.

In detail, the pet food area grew 5.5%, with sales of THB 4.2 billion and a gross margin of 24.5%. In contrast, canned product sales fell 14% year-on-year and frozen product sales fell 12.2%, both affected by factors such as high fish prices and lower consumption in Europe and the USA.

Thai Union has reinforced its inventories in the US in anticipation of possible reciprocal tariffs, with between 4 and 6 months of sales already distributed. The company operates 15 plants in 13 countries and seeks to mitigate risks through its international presence.

In addition, it has obtained a $150 million blue loan from the Asian Development Bank, aimed at boosting sustainability in shrimp farming in Thailand, part of its SeaChange® 2030 strategy.

Thai Union is one of the world’s largest producers of canned tuna, with sales exceeding THB 138 billion in 2024 and more than 44,000 employees worldwide. Its commitment to sustainability has been recognized in indices such as the Dow Jones Sustainability and the FTSE4Good.