Seafood giant Thai Union has reported growth in second-quarter net profit as its ambient, pet care, and value-added business divisions continued to recover.
Net profit during the quarter increased 14.2% year-on-year to THB 1.2 billion (€31 million), while sales increased 3.6% to THB 35.3 billion (€910 million), the company noted.
Thai Union's gross profit margin remained at 18.5% during the quarter - the second highest to date.
The company attributed this performance to a recovery in its pet care division as it focused on high-margin products, improvements in the value-added category, and full rightsizing in the frozen category in the second quarter.
Thiraphong Chansiri, CEO of Thai Union Group, added, “Maintaining the solid momentum from the first quarter was particularly pleasing, and I’m confident that after successfully navigating the challenges we faced in 2023, we are on the path towards sustainable growth.”
Divisional Performance
The John West maker's ambient business saw sales growth of 1.4% year-on-year to THB 17.4 billion (€450 million), with higher demand in the US, Canada, and the Middle East.
The gross profit margin for the unit stood at 18.9% because of low raw material prices of existing inventory and higher tuna prices.
The pet care business reported a 40.6% increase in sales, to THB 4.5 billion (€120 million), compared to the second quarter of 2023. It was driven by higher selling prices, higher sales from premium products, and pent-up demand in Europe and the US.
The gross profit margin for pet care reached an all-time high of 31.3% in the second quarter of 2024, the company added.
Sales in the value-added category increased by 15.5%, to THB 2.6 billion (€67 million), while the gross profit margin stood at 26.5%.
Elsewhere, sales in the frozen segment declined 5.7% year on year, to THB 10.8 billion (€280 million), due to soft demand in the US.
Gross profit margin in the business unit recovered 10.7% year on year, driven by lower raw material prices and ongoing improvements in the feed business.
Quarterly Highlights
Thai Union successfully executed a share buyback programme in the first half of 2024, resulting in the repurchase of 200 million shares.
In addition, it reduced its registered capital by 200 million shares, effective 25 July 2024 from the share buyback programme executed in 2023.
During the second quarter, i-Tail Corporation was included in the SET50 Index of the Stock Exchange of Thailand for the first time since its IPO in December 2022 and was the only new company from the food and beverage industry in the index, the company noted.
In the UK, Thai Union launched the Ecotwist packaging solution for the John West brand for ease of use, sustainability, and minimal waste.
“Thai Union remains fully focused on delivering growth, innovation, and sustainability. I am confident that as we continue to implement our Strategy 2030, it will position us not only for long-term growth but support our vision to become the world’s leading marine health and nutrition company,” Chansiri added.
