Thai Union Group Public Company Limited

For 2025, Thai Union reported sales of THB 132.7 billion, down 4.1% year on year, with volume up 2.5%. Full-year gross profit margin was a record 19.8%, while management also said the company was just below 19% on a different presentation basis; adjusted net profit fell 3.1%, but EPS rose 7.2% to THB 1.16 from THB 1.08. In the fourth quarter, sales were THB 35 billion; organic sales were up 0.7% excluding FX, gross profit margin was 18.3%, operating profit margin was 4.7%, and adjusted net profit declined 22.7%. Net debt increased to THB 61 billion from THB 53 billion, and cost of debt fell to 3.31% from 3.65%. Looking to 2026, management guided for sales growth of 3% to 4%, gross profit margin of 19% to 20%, SG&A of 13.5% to 14.5%, CapEx of THB 5.5 billion, and a dividend policy of at least 50% paid twice a year.

Thiraphong Chansiri framed 2025 as a year of disruption, citing reciprocal tariffs, a stronger Thai baht, and weaker neighboring currencies, but said the company adjusted through its Sonar, Tailwind, and cost reset programs. He emphasized that the company is preparing for growth in 2026, with better product mix, more innovation, and continued portfolio pruning of low-profit businesses. His tone was constructive and confident, especially around returning to growth, EPS support from buybacks, and sustaining dividends.

Ludovic Garnier focused on operating volatility and balance sheet pressure. He said the company achieved its best ever full-year gross profit margin, just below 19%, despite U.S. tariff pressure and FX, but net debt rose to THB 61 billion because working capital increased by THB 6 billion, inventories rose by THB 4 billion, and buybacks consumed THB 4.3 billion. He also noted that cost of debt improved to 3.31% and said the company is not happy with 2025 cash performance, targeting lower net working capital and net debt-to-EBITDA of about 4.4x to 4.5x by end-2026, down from above 5x.

Analysts focused on the Ecuador investment, asking why the company is entering that market, whether it already has customers there, and whether the planned THB 680 million investment and 80% capacity increase would be phased. Management said Ecuador fits its 2030 roadmap, pointed to the country’s large shrimp-farming base and strong export profile, and said the local partner brings industry network and supply-chain strength. Another question was about the share repurchase and capital reduction plan; management said there are no changes and it still intends to proceed, with 400 million shares remaining. Analysts also pressed on dividend flexibility versus future investment needs, and management repeated that dividends will not be reduced below 50%.