Thai Union Group Public Company Limited

For 2025, Thai Union reported sales of THB 132.7 billion, down 4.1% year over year in baht terms, while sales volume increased 2.5%. Full-year gross profit margin was a record 19.8%, adjusted net profit declined 3.1%, and EPS increased 7.2% to THB 1.16. In Q4, sales were THB 35 billion; excluding FX, sales rose 0.7%; gross profit margin was 18.3%; adjusted operating profit was THB 1.65 billion; and adjusted net profit fell 22.7%. Management guided for 2026 sales growth of 3% to 4%, gross margin of 19% to 20%, SG&A of 13.5% to 14.5%, and CapEx of THB 5.5 billion, with dividend policy unchanged at at least 50%.

The CEO framed 2025 as a year of external shocks, especially reciprocal tariffs and a stronger Thai baht, but emphasized that the company kept adjusting and was preparing for growth in 2026. He highlighted portfolio shifts toward higher-margin products, innovation across categories, and the progress of Sonar, Tailwind, and cost-reset initiatives as the basis for future improvement. His tone was cautiously confident, with repeated emphasis that the business has adapted and that growth should return next year.

The CFO said the company achieved its best-ever full-year gross profit margin at just below 19%, despite tariff and FX pressure, and noted that the FX impact reduced quarter by quarter. He said net debt rose from THB 53 billion at the end of 2024 to THB 61 billion at the end of 2025, largely because net working capital increased by THB 6 billion, with inventories and receivables rising in Q4; net debt to EBITDA exceeded 5x, and net debt to equity was 1.18x. He also cited a lower cost of debt at 3.31% versus 3.65% last year, said Sonar delivered USD 20 million of savings versus a USD 15 million target, and reiterated a plan to improve cash generation and reduce working capital in 2026.

Analysts focused on the Ecuador expansion, asking why the company was entering the market, how important it is, and whether the THB 680 million investment would be phased; management said it fits the 2030 roadmap, Ecuador offers large shrimp-farming scale and growth, and the partner brings network and supply-chain strength. A follow-up question asked about dividend capacity given future investment needs, and management said dividends will remain at no less than 50% even as they balance growth investment. Questions also probed market share targets and raw-material assumptions; management said it will keep targeting growth in shrimp and seabass feed, maximize existing capacity, and manage raw materials by locking in prices 3 to 6 months ahead.