- Net profit increased 14.2 percent from adjusted net profit in Q2 2023 to THB 1.2 billion due to recovery in Ambient, PetCare, Value-added categories
- Gross profit margin improved to 18.5 percent, the second highest ever and the highest level in 12 quarters
- Group sales increased 3.6 percent year-on-year to THB 35.3 billion
- PetCare sales grow 40.6% with an all time high gross profit 31.3%
Thai Union Group PCL reported a second-quarter net profit of THB 1.2 billion, a 14.2 percent year-on-year increase led by a sustained recovery in the Ambient, PetCare, and Value-added categories.
Sales momentum continued throughout April – June period, growing 3.6 percent from a year earlier to THB 35.3 billion. The Group’s gross profit margin remained solid at 18.5 percent, the second highest ever, largely thanks to a recovery of PetCare due to its focus on high-margin products, improvements in the Value-added category, and following full rightsizing in the Frozen category in Q2 2024. Net interest-bearing debt to equity was healthy at 0.82x.
With the core performance remaining strong in the second quarter, the Company declared an interim dividend of THB 0.31 per share for the first half of 2024, with a dividend payout ratio of 59 percent.
“The ongoing recovery of our Ambient, PetCare and Value-added businesses resulted in a strong performance during the second quarter,” said Thiraphong Chansiri, CEO of Thai Union Group. “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.”
During the second quarter, sales in the Ambient business continued to grow, rising 1.4 percent year-on-year to THB 17.4 billion, with higher demand in the U.S., Canada and Middle East. The gross profit margin for the category stood at 18.9 percent because of low raw material prices of existing inventory and higher tuna prices. The PetCare business delivered a 40.6 percent increase in sales to THB 4.5 billion compared to the second quarter of 2023 due to higher selling prices, higher sales from premium products and pent-up demand in Europe and the U.S. The gross profit margin for PetCare reached an all-time high of 31.3 percent in Q2 2024.
Value-added category sales increased by 15.5 percent to THB 2.6 billion, while it recorded a gross profit margin of 26.5 percent. However, sales for the Frozen business declined 5.7 percent year-on-year to THB 10.8 billion because of soft demand in the U.S. However, the gross profit margin of the Frozen business recovered year-on-year to 10.7 percent due to lower raw material prices and ongoing improvements in the feed business.
In terms of geographical diversity, Q2 2024 sales in the U.S. and Canada accounted for 40.0 percent of total sales, followed by 32.3 percent from Europe, 10.3 percent from Thailand, and 17.3 percent from others.
The Company successfully executed a share buyback program in H1 2024, resulting in the repurchase of 200 million shares. In addition, the Company reduced its registered capital by 200 million shares, effective July 25, 2024 from the share buyback program 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 & Beverage industry in the index.
Innovation continues to be crucial to the long-term growth of the business, and in the UK during the quarter John West launched ECOTWIST®, a packaging solution designed for ease of use, sustainability, and minimal waste. ECOTWIST® is the biggest packaging innovation in the UK’s ambient tuna category in the last 20 years acting as a key market differentiator.
Sustainability remains a key focus for the Group, and on World Oceans Day, employees volunteered across Thailand, the U.S., Africa and Europe for clean-up activities in local communities. Thai Union was also listed on the FTSE4Good Emerging Index for the ninth consecutive year, and the Group published its 2023 Sustainability Report, highlighting the progress toward the commitments under the SeaChange® 2030 strategy.
“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 said.
