Thai Union records Q3 2024 net profit of THB 1.4 billion, driven by sales growth in Ambient, PetCare, and Value-added categories

BANGKOK, November 7, 2024 -- Group sales saw a 2.7 percent year-on-year increase, reaching THB 34.8 billion, supported by sales volumes growth of 10.4 percent year-on-year

Gross profit margin hit a record high 19.5 percent from strong demand and lower raw material costs

Net profit increased 4.4 percent compared to adjusted net profit in Q3 2023, reaching THB 1.4 billion. Excluding transformation costs, net profit increased strongly by 21.8 percent to THB 1.6 billion

Thai Union Group PCL reported continued growth in net profit to THB 1.4 billion in the third quarter, marking a 4.4 percent increase year-on-year. Earnings per share grew strongly by 8.1% to THB 0.30 per share. The continued success in the Group's bottom line reflects improved operational performance across the three core businesses: Ambient, PetCare and Value-added.

Sales momentum persisted through the quarter, growing 2.7 percent from a year earlier to THB 34.8 billion. Sales volumes increased by 10.4 percent year-on-year, due to higher demand across Ambient, PetCare, and Value-added categories. The Group achieved a record high gross profit margin at 19.5 percent, primarily driven by PetCare, which exceeded 30 percent for two consecutive quarters, largely due to its focus on high-margin products. Meanwhile, the gross profit margin for the Ambient and Frozen businesses also improved from the previous quarter.

The solid earnings result came ahead of Thai Union's launch next week of its Strategy 2030, a growth-focused strategy built on revitalizing the core business, driving the next wave of growth, and exploring new frontiers, supported by a strong foundation of enablers. To execute the strategy, Thai Union has kicked off two transformation programs including Project Sonar – the Group's transformation program to establish a solid foundation for growth – and Project Tailwind – the PetCare growth acceleration program. Further details will be announced on November 11. With the development of these programs to drive future growth, the Company recorded higher expenses in the third quarter 2024. Excluding transformation costs, net profit rose significantly by 21.8 percent to THB 1.6 billion.

Thai Union's balance sheet remained strong in the third quarter, with net interest-bearing debt to equity at 0.79x, an improvement from the previous quarter, while net debt to EBITDA remained healthy at 3.59x. These ratios reflect Thai Union's readiness and flexibility to capture new investment opportunities. Thai Union's robust financial health was reaffirmed by TRIS Rating, which maintained the Company's rating at "A+"

"Thai Union's sustained strength in our Ambient, PetCare, and Value-added categories led to a solid third-quarter performance," said Thiraphong Chansiri, CEO of Thai Union Group. "Our focus remains on delivering sustainable growth, with Strategy 2030 serving as the cornerstone of our long-term ambitions. This strategic approach ensures we are well-positioned to continue delivering value and supports our vision of becoming the world's leading marine health and nutrition company."

The third quarter saw a strong recovery in demand, driving Ambient sales up 13.1 percent year-on-year to a record THB 17.9 billion, spurred by increased demand in the Middle East, the U.S. and Canada. Elevated sales volumes, along with lower raw material costs, delivered a healthy gross profit margin, which reached 20.1 percent. PetCare sales experienced a 15.4 percent year-on-year rise to THB 4.4 billion, driven by premium product offerings and consistent demand in core markets such as Europe, the U.S., and Canada. The PetCare segment's gross profit margin was 30.6 percent. The Value-added category saw a 1.3 percent sales increase year-on-year to THB 2.7 billion, supported by growth in packaging, value-added offerings and by-products.

In contrast, Frozen sales declined by 15.2 percent year-on-year due to soft demand in the U.S., with a gross profit margin of 12.0 percent. However, the feed business under the Frozen category grew significantly, with sales up 6.4 percent year-on-year to THB 1.4 billion, driven by a higher sale of shrimp feed in the Indonesia market. The gross profit margin in the feed business reached 19.2 percent, reflecting its strategic focus on high margin products.

In terms of geographical diversity, Q3 2024 sales in the U.S. and Canada accounted for 38.3 percent of total sales, followed by 29.3 percent from Europe, 11.5 percent from Thailand, and other regions at 20.9 percent.

With innovation a key driver of future growth, Thai Union officially opened its Innovation Hub in Wageningen in the Netherlands, during the third quarter. The new facility - which houses around 20 scientists- focuses on product and packaging innovation for the Group's ambient seafood brands.

"As we advance with our Strategy 2030, we are not just aiming for growth – we are setting the stage for long-term resilience and leadership in marine health and nutrition," said Chansiri. "We are excited to officially launch Strategy 2030 under the theme ‘Turning the Tides' on November 11. This ambitious roadmap, which will guide us in transforming our business to ensure sustainable success, drive innovation, and create value, will be key as we continue to shape the future of the industry and enhance our global footprint."

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