Thai Union Group Public Company (TU) Q3 2024 earnings summary

Executive summary

• Achieved strong financial performance in 9M 24, with sales up 2.7% YoY to ฿103.3 billion and net profit from continuing operations at ฿4.62 billion, driven by organic growth and demand recovery in key categories.

• Q3 24 saw record-high gross profit margin at 19.5%, with net profit growing for three consecutive quarters, reaching THB 1.4bn (THB 1.6bn excluding transformation costs).

• Strategy 2030 and transformation programs underpin long-term ambitions for sustainable growth and operational excellence.

• Red Lobster exit completed, with all related losses recognized in 2023; 2024 bankruptcy and restructuring had no material impact.

• Innovation and sustainability remain core, with the launch of an Innovation Hub in the Netherlands and new partnerships to reduce ocean plastic waste.

Financial highlights

• 9M 24 sales: THB 103,343mn (+2.7% YoY); gross profit: THB 19,070mn (+12.9% YoY); EBITDA: THB 5,576mn (+17.8% YoY); net profit: THB 3,772mn (+15.8% YoY).

• Q3 24 sales: THB 34,840mn (+2.7% YoY); gross profit: THB 6,793mn (+9.0% YoY); operating profit: THB 2,074mn (-3.9% YoY); net profit: THB 1,400mn (+4.4% YoY).

• Excluding transformation costs, Q3 24 net profit was THB 1,634mn (+16.1% YoY).

• Cash flow from operating activities was ฿9.66 billion for the nine-month period; free cash flow in 9M 24 reached THB 8.1bn, supporting net debt reduction.

• Interim and annual dividends totaling ฿0.55 per share were paid in 2024.

Outlook and guidance

• 2024 sales growth guidance revised to +3-4% YoY (prior: +4-5%); GPM target raised to ~18.5-19.0%; SG&A to sales at ~12.5-13.0%.

• CAPEX guidance lowered to THB 3.5-4.0bn; dividend payout policy remains at least 50%.

• Plans to refinance perpetual bond in 2025 and redeem ฿6 billion in perpetual debentures in November 2024, with abundant credit lines and stable credit rating.

• The Group is monitoring the impact of OECD Pillar Two minimum tax reforms effective 2024 and has launched a compliance project.