Thai Union Group Public Company (TU) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 8% year-over-year sales growth to Baht 32,054 million, the highest since Q3 2022, with net profit up 9.2% YoY to Baht 1,113 million, driven by strong organic momentum and sustained volume growth across key categories.

• Operating profit rose ~30% YoY to Baht 1,163 million, aided by a one-time non-cash tax credit and lower financial costs.

• PetCare and Frozen segments led growth, while Value-added saw softness due to weaker demand in key markets.

• Resilient performance despite global disruptions, supported by transformation initiatives, diversified portfolio, and disciplined execution.

• Basic earnings per share for Q1 2026 was Baht 0.24.

Financial highlights

• Total sales reached THB 32,054mn, up 7.6% YoY, with organic sales growth of 9.3% and volume growth of 2.8%.

• Gross profit increased to THB 5,825mn, though GPM declined to 18.2% from 18.8% due to U.S. tariff-related costs.

• Operating profit surged 29.0% YoY to THB 1,163mn, reflecting lower SG&A after transformation cost reductions.

• Net profit rose 9.2% YoY to THB 1,113mn, with EPS up 18.0% YoY, supported by share buybacks.

• Net debt increased to THB 63bn, but ND/E improved slightly to 1.17x due to equity growth.

Outlook and guidance

• FY 26 guidance maintained: sales growth of +3–4% YoY, GPM of 19.0–20.0%, and CAPEX of THB 5.5–6.0bn.

• Growth expected across all categories, led by PetCare and Feed, with gradual pass-through of U.S. tariffs.

• The Group expects continued investment in capacity expansion, including a new aquaculture factory in Ecuador with a planned investment of up to USD 55 million by 2028.

• Dividend payout policy remains at least 50%, with final dividend for 2025 profits paid in April 2026.