Q2 2024 Performance Report of Thai Union

Thai Union, the owner of UK fish brand John West, has reported a strong second-quarter performance with a net profit of 1.2bn Thai Baht (THB) (≈£26m), marking a 14.2% year-on-year increase. This growth is attributed to the company’s focus on premium products and strategic market expansion.

During the period between April and June, Thai Union saw a 3.6% increase in sales, reaching THB 35.3bn (≈£780m). The Group’s gross profit margin stood at 18.5%, its second-highest on record, indicating efficient operations and cost management.

One of the key drivers of this positive performance was the pet care category, which experienced a significant 40.6% increase in sales compared to the previous year’s second quarter. Sales in this segment reached THB 4.5bn (≈£99m), with strong demand coming from Europe and the US. The gross profit margin for pet care reached 31.3% in Q2 2024, setting a new record for the company.

Additionally, improvements in the value-added category contributed to the overall growth, with a 15.5% increase in sales to THB 2.6bn (≈£57m) and a gross profit margin of 26.5%. The company’s focus on innovation and premium offerings in these segments has paid off with increased consumer interest and higher margins.

Sales in the ambient business also saw a 1.4% year-on-year growth to THB 17.4bn (≈£384m), driven by increased demand in the US, Canada, and the Middle East. The gross profit margin for this category was 18.9%, supported by favorable raw material prices and higher tuna prices.

However, the frozen business experienced a decline of 5.7% year-on-year to THB 10.8bn (≈£238m) due to weak demand in the US. Despite this, the gross profit margin for frozen improved by 10.7% year-on-year, attributed to lower raw material prices and ongoing enhancements in the feed business.

The company’s major markets were the US and Canada, which accounted for 40% of total sales, followed by Europe (32.3%) and Thailand (10.3%). Other regions represented 17.3% of sales, showcasing Thai Union’s global presence and diversified market reach.

CEO Thiraphong Chansiri expressed satisfaction with the company’s performance, highlighting the strong recovery in key business segments. The company’s strategic initiatives, including a share buyback program and capital reduction, have been instrumental in driving sustainable growth and shareholder value.

Looking ahead, Thai Union remains committed to innovation and sustainability. In the UK, the John West brand introduced a new packaging solution ‚Ecotwist‘ to enhance user experience, sustainability, and reduce waste. The company’s inclusion in the FTSE4Good Emerging Index for the ninth consecutive year underscores its commitment to responsible business practices.

Chansiri emphasized the company’s focus on growth, innovation, and sustainability as it implements Strategy 2030 to become a leading marine health and nutrition company globally. With a strong foundation and a clear vision for the future, Thai Union is poised for continued success in the evolving market landscape.