Thai Union Group Plc reported a net profit of 1.2 billion baht for the second quarter of this year, reflecting a 14.2% increase compared to the same period last year.
Sales rose by 3.6% year-on-year to reach 35.3 billion baht. The company’s gross profit margin remained steady at 18.5%, marking the second-highest level in its history, with a net interest-bearing debt-to-equity ratio of 0.82 times.
Additionally, the company announced an interim dividend of 0.31 baht per share for the first half of 2024, with a dividend payout ratio of 59%.
Thiraphong Chansiri, CEO of Thai Union Group, stated, “The ongoing recovery of our Ambient, PetCare, and value-added businesses led to a strong performance in the second quarter. Maintaining the solid momentum from the first quarter is particularly satisfying, and I’m confident that after successfully addressing the challenges we encountered in 2023, we are on a path toward sustainable growth.”
Sales in the Ambient segment increased by 1.4% year-on-year to 17.4 billion baht, driven by stronger demand from the U.S., Canada, and the Middle East. The gross profit margin for this category was 18.9%, encouraged by low raw material costs in existing inventory and higher tuna prices.
The PetCare business saw sales surge by 40.6% year-on-year to 4.5 billion baht, thanks to rising selling prices, increased sales of premium products, and pent-up demand in Europe and the U.S. The gross profit margin for PetCare reached a record high of 31.3% in the second quarter this year.
Sales in the value-added segment grew by 15.5% to 2.6 billion baht, with a gross profit margin of 26.5%. Conversely, sales in the frozen segment fell by 5.7% year-on-year to 10.8 billion baht due to softened demand in the U.S. However, the gross profit margin in this category improved year-on-year to 10.7%, facilitated by lower raw material costs and ongoing enhancements in the feed business.
Sales from the U.S. and Canada comprised 40% of total sales in the second quarter, followed by Europe at 32.3%, Thailand at 10.3%, and other regions at 17.3%.
In the first half of the year, Thai Union repurchased 200 million shares and reduced its registered capital by that same amount, effective July 25, 2024, as part of a share buyback conducted 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, making it the sole new food and beverage company in the index.
“Thai Union remains fully committed to driving growth, innovation, and sustainability,” Mr. Thiraphong added. “I am confident that as we continue to execute our Strategy 2030, we will position ourselves not only for long-term growth but also to fulfill our vision of becoming the world’s leading marine health and nutrition company.”
