Thai Union, a major seafood company operating brands including King Oscar and John West, announced revised guidance for its financial performance later this year. The company increased its projected sales growth to a range of 4-6%, up from an earlier estimate of 3-4% expansion. Additionally, the company raised its forecast for gross margin performance, now expecting a range of 19.5% to 20.5% compared with its previous projection of 19-20%.
The company’s second-quarter results provided the basis for the improved outlook. Sales in the second quarter reached Bt33.85bn, representing growth of 1.4% from the prior year period. The company reported a gross margin of 21.4% during the quarter, which leadership characterized as a record high. Operating profit increased 12.6% to Bt2.15bn, though net profit declined slightly by 0.7% to Bt1.26bn, primarily reflecting elevated tax expenses.
Performance was supported by growth across several business segments. The ambient seafood division, the largest by sales, generated Bt16.9bn in the quarter with a 1.5% sales increase and 4.4% volume growth, driven by private-label tuna and salmon demand. Pet care sales grew 2.3% with volumes rising 7.8%, bolstered by strong demand in the US and Europe. The frozen business remained relatively flat at Bt10bn. Value-added products, which include ready-to-cook and ready-to-eat items along with packaging and ingredient interests, also contributed to growth.
Half-year results reflected the underlying momentum. First-half net sales grew 4.3% to Bt65.9bn, operating profit increased 17.9% to Bt3.31bn, and net profit rose 3.7% to Bt2.38bn. Company leadership noted that the second-quarter performance validated its strategic direction and indicated the company would raise its dividend payout by more than 14%. Thai Union is working toward 2030 targets that include achieving gross margins of 21-23%.
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