Thai Union sees strong pet care growth, while frozen declines Y-O-Y

The owner of UK fish brand John West has reported a second-quarter net profit of 1.2bn Thai Baht (THB) (≈£26m) – a 14.2% year-on-year increase.

Between April and June, Thai Union sales grew 3.6% from the year prior, reaching THB 35.3bn (≈£780m)

The Group’s gross profit margin stood at 18.5%, its second highest on record.

The uptick was fuelled by its pet care category, as a result of its focus on premium products, which delivered a 40.6% increase in sales from last year’s second quarter. Sales reached THB 4.5bn (≈£99m), with demand led by Europe and the US. The gross profit margin for pet care reached 31.3% in Q2 2024 – a record for the company.

Improvements in the value-added category also helped propel the positive growth, with this sector seeing a 15.5% to THB 2.6bn (≈£57m), while it recorded a gross profit margin of 26.5%.

During the second quarter, sales in the ambient business also grew, rising 1.4% year-on-year to THB 17.4bn (≈£384m), with higher demand in the US, Canada, and the Middle East. The gross profit margin for the category was 18.9% because of low raw material prices of existing inventory and higher tuna prices.

Thai Union’s frozen business declined 5.7% year-on-year to THB 10.8bn (≈£238m) as a result of weak demand in the US. However, the gross profit margin for frozen has righted itself, recovering year-on-year by 10.7% as a result of lower raw material prices and ongoing improvements in the feed business.

The business’s biggest markets were the US and Canada, accounting for 40% of total sales. This was followed by Europe (32.3%), and Thailand (10.3%), with other areas representing 17.3%.

“The ongoing recovery of our Ambient, PetCare and Value-added businesses resulted in a strong performance during the second quarter,”​ commented Thiraphong Chansiri, CEO of Thai Union Group.

The company executed a share back buy programme in the first half of the year, repurchasing 200m shares. It has also reduced its registered capital by 200m shares, effective last month (July 2024) from its share buyback programme carried out last year.

“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.”​

Innovation and sustainability are key focuses for the group in the future.

In the UK, its John West brand launched a new packaging solution ‘Ecotwist’ in June, to make it easier to use, more sustainable and reduce waste.

Meanwhile, the group has also been listed on the FTSE4Good Emerging Index for the ninth consecutive year.

“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 concluded.