The Thai Union Group, a major producer of frozen, canned and chilled seafood products marketed around the world, reported a 7.6% year‑on‑year (YoY) increase in sales to THB 32.1 billion for the first quarter of 2026, delivering growth despite a more challenging operating environment marked by unfavorable foreign exchange movements, war in the Middle East, and ongoing cost pressures related to US tariffs. The increase was driven by disciplined pricing actions across key categories and 2.8% sales volume growth, particularly in the pet and frozen foods categories. Organic sales (excluding foreign exchange impact) grew by 9.3%, underscoring sustained demand recovery across core businesses.
Operating profit rose sharply by 29% year-on-year, supported by higher sales, gross profit growth, and a significant reduction in expenses from sales, general and administration (SG&A), following the reduction of transformation‑related costs. Reported net profit increased 9.2% year‑on‑year to THB 1.1 billion, supported by improved operating performance.
Thiraphong Chansiri, president and chief executive officer of Samut Sakhon-headquartered Thai Union, stated: “Our first-quarter performance underscores the strength of our pricing strategy, portfolio mix, and operational execution. It also demonstrates the group’s flexibility, experience and global scale in navigating the combined headwinds of geopolitical conflict, tariffs and unfavorable foreign exchange movements. Against this backdrop, PetCare and Frozen maintained strong momentum, transformation costs continued to unwind, and we will build on this strong start to 2026.”
Despite ongoing cost pressures related to US tariffs, gross profit increased 3.8% year‑on‑year to THB 5.8 billion, while gross profit margin stood at 18.2%, reflecting disciplined pricing and cost control. Earnings per share increased by 18%, primarily due to a reduced number of outstanding shares following the share buyback program .
Q1 2026 Business Segment Performance
The PetCare business delivered a very strong quarter, with sales increasing 22.6% year‑on‑year to THB 5.1 billion, driven by robust demand in the United States and Europe, a recovery in Japan, and a continued shift toward premium products.
Frozen sales grew 11.6% year-on-year to THB 9.4 billion, supported by pricing actions and volume growth, particularly in shrimp and feed.
Ambient product sales increased 2.5% year-on-year to THB 15.1 billion, primarily driven by pricing actions implemented to mitigate tariff‑driven cost inflation, while volumes remained broadly stable.
Value‑added product sales softened by 1.2% year-on-year to THB 2.4 billion, reflecting softer demand in the U.S. and portfolio streamlining actions.
2026 Outlook
With the global operating environment remaining volatile, Thai Union continues to closely monitor developments related to US tariffs, conflict in the Middle East, and input costs.
The group’s 2026 guidance remains unchanged, targeting sales growth of 3-4%, with gross profit margin guided at 19-20%. SG&A to sales is expected at 13.5-14.5%. The company also reaffirmed its ongoing commitment to shareholder returns, maintaining a dividend payout ratio of at least 50%.
“Our first quarter confirms our resilience and the effectiveness of our transformation strategy,” said Thiraphong. “We remain focused on disciplined pricing, leveraging our global sourcing and processing footprint, and maintaining operational flexibility to manage ongoing uncertainty.”
