Thai Union posts US$3.70 billion sales, 18.9% gross margin in FY2025

THAILAND – Thai Union Group reported total sales of US$3.70 billion (133 billion baht) for the year ended 2025, alongside a record gross profit margin of 18.9% and a 7.2% year-on-year increase in earnings per share.

Sales volumes rose 2.5% to 908,000 metric tonnes, supported by gains across Ambient, Frozen and PetCare, while adjusted operating profit, excluding transformation costs, reached about US$195 million (7 billion baht).

Management said pricing adjustments and cost controls helped counter tariff-related expenses in the United States and currency pressures, enabling margin expansion despite external trade challenges.

In the fourth quarter, organic sales excluding foreign exchange effects grew 0.7%, marking a second consecutive quarter of expansion, driven by volume growth in Frozen, Feed and PetCare.

Segment performance

Ambient volumes increased in Europe, the United States, Canada and Thailand, although revenue declined 1.8% from a year earlier due to lower average prices, mainly in Europe.

Frozen sales advanced 3.4% year on year, with volumes up 5.6%, and gross margin in the segment reached 14.5%, reflecting tariff-linked pricing adjustments and improved feed performance.

PetCare sales increased 1.4% year on year, or 6.7% in US dollar terms, supported by a 2.8% rise in volumes, while gross margin improved to 26.3%, exceeding the company’s 23 to 25% target range for a third straight quarter.

The value-added segment posted a gross margin of 21.7%, though revenue was affected by lower demand in the United States.

Capital returns and outlook

The board approved a second-half dividend of US$0.0097 (0.35 baht) per share, bringing the total annual dividend to US$0.0194 (0.70 baht) per share, representing a 6% increase from 2024 and a payout ratio of 57.7%.

In the first half of 2025, the company repurchased 400 million shares valued at US$119.8 million (4.3 billion baht) and later cancelled 200 million shares, reducing paid-up capital to 4.2 billion shares effective Jan 8, 2026.

For 2026, Thai Union expects sales to grow 3 to 4% and gross margin to range between 19 and 20%, while targeting US$60 million in savings under its Cost Reset programme and maintaining a dividend payout ratio of at least 50%.

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