Thai Union Group PCL today reported a strong second quarter, delivering an all-time high gross profit margin of 21.4% exceeding the 2026 target range and already in line with the company's 2030 target. Dividend per share grew 14.3% to THB 0.40, the company's strongest interim dividend since 2022 and equivalent to an attractive interim dividend yield of 3.4%.
Earnings-per-share grew by 3.5% to THB 0.33 while the net debt-to-equity improved to 1.15x, reflecting Thai Union's financial strength, disciplined capital management and a healthy balance sheet.
Second quarter sales rose 1.4% year-on-year to THB 33.8 billion, the fourth consecutive quarter of organic growth, while sales volume increased for the tenth straight quarter, reflecting resilient demand in the ambient, PetCare and value-added businesses.
Thiraphong Chansiri, President and CEO of Thai Union Group, said: "Thai Union's second quarter confirms our strategy is yielding strong results for our shareholders. Reaching a record gross profit margin already in line with our 2030 target, growing volumes for a tenth consecutive quarter, and raising our dividend payout by more than 14% shows the strength and consistency of the business we have built. We remain focused on delivering sustainable, profitable growth and returning value to our shareholders."
The record margin was driven by a more favorable product mix, operating efficiency, and disciplined cost management, lifting gross profit 10.2% year-on-year to THB 7.2 billion and operating profit 12.6% to THB 2.1 billion.
Q2 2026 Business Segment Performance
Performance across Thai Union's four categories was as follows:
- Ambient sales rose 1.5% year-on-year to THB 16.9 billion, with volume up 4.4% on stronger private label demand for canned tuna and salmon and seasonal promotions in Europe. Canned sardines and mackerel added momentum, buoyed by favorable market trends global sardine consumption rose 13% and mackerel 7% in 2025 as affordable, protein-rich options gain popularity with younger, health-conscious consumers. Gross profit margin expanded 1.8 points to a record 23.8%.
- Frozen sales held broadly stable at THB 10.0 billion, led by strength in Frozen Shrimp, with gross profit margin improving to 13.5% on more favorable shrimp raw material prices and continued cost discipline.
- PetCare sales grew 2.3% year-on-year, on 7.8% volume growth and strong demand in the U.S. and Europe. Premium products reached 52.4% of sales, underpinning a healthy 29.7% margin, with further support from efficiency gains under i-Tail's transformation program.
- Value-added sales grew 5.8% year-on-year to THB 2.5 billion on a strong 7.4% rise in volume, led by the packaging segment and solid demand across value-added and by-product lines.
2026 Guidance
Thai Union raised its full-year 2026 guidance, lifting expected sales growth to 4-6% (from 3-4%) and gross profit margin to 19.5-20.5% (from 19-20%), while lowering CAPEX to THB 5.0-5.5 billion (from THB 5.5-6.0 billion). SG&A to sales is unchanged at 13.5-14.5%, and the dividend payout ratio remains at least 50%. The upgrade reflects stronger operating momentum, with growth driven primarily by higher volumes in Ambient and PetCare, and margin gains led by Ambient and Frozen. Guidance assumes an average rate of THB 32.50 to the US dollar; the baht has traded above THB 33 since June, which would support export and overseas earnings translation.