Thai Union posts 1.2 billion baht Q2 profit, up 14.2%

Thai Union Group Plc has recorded a net profit of 1.2 billion baht in the second quarter of this year, marking an increase of 14.2% compared to the same period last year.

Sales for the group rose by 3.6% year-on-year, reaching 35.3 billion baht. The gross profit margin remained at 18.5%, the second-highest in the company’s history. The net interest-bearing debt-to-equity ratio stood at 0.82 times.

The company declared an interim dividend of 0.31 baht per share for the first half of this year, with a dividend payout ratio of 59%.

The Chief Executive of Thai Union Group, Thiraphong Chansiri stated that the ongoing recovery of our Ambient, PetCare and value-added businesses resulted in a strong performance during the second quarter.

“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.”

Sales in the Ambient business segment grew by 1.4% year-on-year to 17.4 billion baht, driven by higher demand in the US, Canada, and the Middle East. The gross profit margin for this category was 18.9%, which was attributed to low raw material prices of existing inventory and higher tuna prices.

PetCare business

The PetCare business saw a significant sales increase of 40.6% to 4.5 billion baht year-on-year. This growth was driven by higher selling prices, increased sales of premium products, and pent-up demand in Europe and the US. The gross profit margin for PetCare reached an all-time high of 31.3% in the second quarter.

Sales in the value-added category rose by 15.5% to 2.6 billion baht, with a gross profit margin of 26.5%.

However, sales for the frozen business declined by 5.7% year-on-year to 10.8 billion baht, due to soft demand in the US. Despite this, the gross profit margin in this category recovered year-on-year to 10.7%, thanks to lower raw material prices and ongoing improvements in the feed business.

In terms of geographical sales distribution, the US and Canada accounted for 40% of total sales in the second quarter. Europe followed with 32.3%, Thailand with 10.3%, and other regions with 17.3%.

Thai Union repurchased 200 million shares in the first half of the year and reduced its registered capital by 200 million shares, effective from July 25, this year. This move was based on a share buyback executed last year.

Second quarter

Additionally, during the second quarter, a subsidiary of Thai Union, i-Tail Corporation, was included in the SET50 Index of the Stock Exchange of Thailand (SET) for the first time since its initial public offering in December 2022. It became the only new food and beverage company in the index.

Thai Union remains fully focused on delivering growth, innovation and sustainability, said Thiraphong.

“I am confident that as we continue to implement our Strategy 2030, it will position us not only for long-term growth but also to support our vision to become the world’s leading marine health and nutrition company.”

Additionally, during the second quarter, a subsidiary of Thai Union, i-Tail Corporation, was included in the SET50 Index of the SET for the first time since its initial public offering in December 2022. It became the only new food and beverage company in the index, reported Bangkok Post.