Thai Union revises its sales forecast as US tariffs disrupt trade

THAILAND – Thai Union has trimmed its full-year sales growth forecast for 2025, citing the impact of US import tariffs imposed under the Trump administration.

The seafood conglomerate, known for brands such as John West, had initially projected annual sales to rise between 3% and 4%, but it now expects growth in the lower range of 1% to 3%.

The adjustment comes in response to a 10% baseline tariff introduced by the United States on imports from most countries, with China excluded from a temporary 90-day suspension granted to others.

Thai Union confirmed it is among the companies directly affected by the new trade policy, which has added pressure to global seafood exports.

In a statement, the company said the policy shift had increased market uncertainty and forced exporters in several countries to reassess their projections.

It added that the revised outlook assumes a full-year application of the 10% tariff across all shipments to the US.

Despite the tariff challenges, Thai Union said its global operations provide some resilience, allowing it to manage risks and navigate ongoing disruptions.

However, the company acknowledged that the first quarter of 2025 had already presented serious difficulties due to changing geopolitical conditions and broader economic headwinds.

Revenue for the quarter declined by 10.3%, falling to approximately US$902.3 million (Bt29.78 billion), reflecting reduced activity across several business segments.

Sales on an organic basis dropped by 6.9%, with declines reported in the ambient, frozen, and value-added seafood categories.

The group’s pet care unit was the only area to register modest growth during the quarter, offering limited offset to the broader decline.

Net profit also took a hit, slipping 11.6% to about US$30.6 million (Bt1.01 billion) over the same period.

Margins improve despite falling sales

While revenues declined, Thai Union’s gross profit margin improved, rising to 18.7% from 17.3% in the first quarter of 2024.

This indicates some control over production costs or pricing adjustments despite the dip in overall sales.

Meanwhile, Nomad Foods, a major frozen-food producer in Europe and owner of Birds Eye, also revised its outlook downward due to persistent market challenges.

The company now forecasts organic revenue growth of between 0% and 2% for 2025, down from its earlier 1% to 3% projection.

Its expected growth in adjusted EBITDA has also been cut to 0% to 2%, compared with the previous estimate of 2% to 4%.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.