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

Executive summary

• Q2 2025 sales reached THB 33.39 billion, down 5.4% year-on-year, mainly due to a 4.7% negative FX impact; organic sales declined only 0.7%.

• All business categories returned to positive territory, with strong performance in the branded business in Europe.

• Strategic transformation and cost-saving programs improved agility, efficiency, and profitability, with record-high gross margin and strong adjusted net profit growth.

• Mitsubishi Corporation increased its stake to 20%, deepening a 30-year partnership and unlocking further synergies.

• Sustainability initiatives advanced, with progress in responsible sourcing, emissions reduction, and waste management.

Financial highlights

• Gross profit margin reached a record 19.7% in Q2 and 19.3% for H1 2025, with adjusted net profit up 13.2% year-on-year.

• Adjusted operating profit grew 3.2% year-on-year; operating profit margin at 6.4%.

• First half 2025 sales were THB 63.17 billion, down 7.8% year-on-year; net profit attributable to owners was THB 2.29 billion.

• Earnings per share increased 18.5% to THB 0.32 in Q2 and THB 0.56 for H1; interim dividend of THB 0.35 per share approved.

• Net debt to equity at 1.1x, with net debt to EBITDA at 4.7x due to share buybacks.

Outlook and guidance

• Gross profit margin guidance upgraded to 18.5%-19.5%, aiming for the upper end.

• Top line growth for the year expected at -1% to -2%, assuming stable FX rates and reflecting 19% U.S. tariff.

• CapEx to be managed below THB 4 billion, focusing on automation and digitalization.

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

• Management is closely monitoring the impact of new U.S. tariffs and market volatility.