Thai Union Group has reported a 1.7% increase in sales in the first quarter of its financial year, to THB 33.2 billion (€836 million), while net profit for the period rose 53.9%.
The group, which owns the John West and Red Lobster brands, among others, said that its first quarter performance was driven by a 'robust recovery in demand' across its core categories, Ambient, PetCare and value-added products.
Core Business
“Thai Union Group’s focus on our core business of Ambient, Frozen, and PetCare has been instrumental in returning our business to growth,” commented Thiraphong Chansiri, chief executive of Thai Union Group.
“Our group demonstrated great resilience during 2023, when we faced a challenging operating environment, and after seeing initial signs of a recovery in our performance in the final quarter of last year, I’m pleased to see that we have now emerged even stronger.”
The group's Ambient division reported a 12.7% increase in sales, with volumes up 12.7%, driven by stronger demand in the Middle East, Europe, and the US, Thai Union said.
In PetCare, sales were up 13.2%, with the division reporting a gross profit margin of 25.7%, its highest since the second quarter of 2022.
In its value-added category, meanwhile, sales were up 10.8%, while its Frozen business saw sales decline 17.7%, largely due to softer demand in the US market.
Sustainability Investment
The quarter also saw Thai Union increase its investment in sustainability, announcing a zero wastewater discharge project at its fish plant in Thailand, as well as launching the Shrimp Decarbonisation initiative, developed in collaboration with global environmental organisation The Nature Conservancy and Ahold Delhaize USA.
Elsewhere, its Thai Union Feedmill in Asia received the Aquaculture Stewardship Council (ASC) Feed Standard certificate.
“I am confident that through our Strategy 2030, which will create a sustainable and healthier future for humans, pets, and the planet, and which is underpinned by a purpose of Healthy Living, Healthy Oceans, that Thai Union Group is well positioned for sustained, long-term growth,” Chansiri added.
