Thai Union Group Public Company (TU) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined 10.3% year-on-year to THB 29.79 billion, mainly due to weaker organic sales and FX headwinds, but gross profit margin reached a record 18.8%.

• Adjusted net profit rose 8.9% year-on-year to THB 1.3 billion, supported by share of profit from Avanti Group and a one-off deferred tax benefit.

• Transformation initiatives and cost controls, including SONAR and TAILWIND, delivered savings and operating profit uplift.

• Share buyback program increased to THB 5 billion, and a $150 million ADB Blue Loan was secured for sustainable shrimp sourcing.

• Thai Union maintained an 'A/Stable' JCR rating and ranked in the top 1% globally for sustainability by S&P Global.

Financial highlights

• Q1 2025 sales: THB 29.79 billion (down 10.3% YoY); gross profit: THB 5.61 billion; adjusted operating profit down 24.7% YoY; adjusted net profit up 8.9% YoY.

• Gross profit margin reached 18.8%, a record Q1 high.

• EPS was THB 0.24/share, up 0.7% YoY due to lower share count after buybacks.

• Free cash flow was negative at THB -551 million, with net debt rising to THB 56.2 billion.

• Net profit attributable to owners was THB 1.02 billion, with total comprehensive income of THB 1.60 billion.

Outlook and guidance

• 2025 sales growth guidance revised to 1%-3% due to US tariffs and market volatility.

• Gross profit margin guidance set at 18%-19%, SG&A ratio at 13.5%-14%, and CapEx reduced to THB 3-3.5 billion.

• Dividend policy remains unchanged, with at least 50% payout twice yearly.

• Effective tax rate for 2025 expected to be lower, with a THB 300 million top-up tax impact from BEPS 2.0.

• Dividend payment and treasury share repurchases executed during the quarter.