Thai Union Group Public Company (TU) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales declined 5.4% year-on-year to THB 33.39 billion, mainly due to FX impact and softer Frozen demand in the U.S.; organic sales declined only 0.7%.

• Gross profit margin reached a record 19.7%, with adjusted net profit up 13.2% year-on-year to THB 1,506 million; EPS increased 18.5% to THB 0.32, supported by share buybacks.

• All business categories returned to positive territory, with strong branded business in Europe and transformation programs SONAR and Tailwind delivering cost savings and operational uplift.

• Mitsubishi Corporation plans to increase its stake to 20%, deepening a long-term partnership and forming a strategic alliance.

• Sustainability initiatives advanced, achieving 98.9% responsible sourcing, 21% GHG reduction, and zero landfill at 23 sites.

Financial highlights

• Q2 2025 sales were THB 33,389 million (-5.4% YoY); 1H 2025 sales were THB 63,178 million (-7.8% YoY).

• Q2 2025 gross profit was THB 6,567 million (+0.5% YoY), with a record GPM of 19.7%; adjusted net profit for Q2 was THB 1,506 million (+13.2% YoY).

• Adjusted operating profit grew 3.2% YoY to THB 2,142 million; operating profit margin at 6.4%.

• EPS for Q2 was THB 0.32 (+18.5% YoY); interim dividend of THB 0.35/share approved, with a 59% payout ratio.

• Net debt to equity at 1.1x; net debt to EBITDA at 4.7x, temporarily above target due to share buybacks.

Outlook and guidance

• 2025 sales growth guidance revised to -1% to -2% YoY, reflecting 19% U.S. tariff and FX headwinds.

• Gross profit margin guidance upgraded to 18.5%-19.5%, aiming for the upper end; SG&A to sales at 13.5%-14.0%.

• CapEx to be managed at THB 3.5-4.0 billion, focusing on automation and digitalization.

• Dividend policy unchanged: at least 50% payout, twice a year.

• U.S. tariffs on Thai products set at 19% from August, with strategic sourcing from low-tariff countries to mitigate impact.