Thai Union Group's Q2 profits rise 14.2%
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Thai Union Group's Q2 profits rise 14.2%

Thai Union announced an interim dividend of 0.31 baht per share for the first half of 2024, with a dividend payout ratio of 59%. (Photo: Apichart Jinakul)
Thai Union announced an interim dividend of 0.31 baht per share for the first half of 2024, with a dividend payout ratio of 59%. (Photo: Apichart Jinakul)

Thai Union Group Plc posted a net profit of 1.2 billon baht in the second quarter this year, rising 14.2% year-on-year.

Sales rose by 3.6% from a year earlier to 35.3 billion baht.

The group's gross profit margin remained at 18.5%, the second-highest in its history, and net interest-bearing debt to equity was 0.82 times.

The company also announced an interim dividend of 0.31 baht per share for the first half of 2024, with a dividend payout ratio of 59%.

"The ongoing recovery of our Ambient, PetCare and value-added businesses resulted in a strong performance during the second quarter," said Thiraphong Chansiri, chief executive of Thai Union Group.

"Maintaining the solid momentum from the first quarter was particularly pleasing, and I'm confident that after successfully navigating the challenges we faced in 2023, we are on the path towards sustainable growth."

Sales in the Ambient business grew by 1.4% year-on-year to 17.4 billion baht, with higher demand in the US, Canada and the Middle East.

The gross profit margin for the category was 18.9%, attributed to low raw material prices of existing inventory and higher tuna prices.

For the PetCare business, sales increased 40.6% to 4.5 billion baht year-on-year thanks to higher selling prices, an uptick in sales of premium products, and pent-up demand in Europe and the US.

The gross profit margin for PetCare reached an all-time high of 31.3% in the second quarter this year.

Value-added category sales increased by 15.5% to 2.6 billion baht, with a gross profit margin of 26.5%.

However, sales for the frozen business declined 5.7% year-on-year to 10.8 billion baht because of soft demand in the US. Yet the gross profit margin in the category recovered year-on-year to 10.7% thanks to lower raw material prices and ongoing improvements in the feed business.

Sales in the US and Canada accounted for 40% of total sales in the second quarter, followed by 32.3% from Europe, 10.3% from Thailand, and 17.3% from others.

Thai Union repurchased 200 million shares in the first half and reduced its registered capital by 200 million shares, effective from July 25, 2024, based on a share buyback executed in 2023.

During the second quarter, i-Tail Corporation was included in the SET50 Index of the Stock Exchange of Thailand for the first time since its initial public offering in December 2022, making it the only new food and beverage company in the index.

"Thai Union remains fully focused on delivering growth, innovation and sustainability," said Mr Thiraphong.

"I am confident that as we continue to implement our Strategy 2030, it will position us not only for long-term growth, but also to support our vision to become the world's leading marine health and nutrition company."

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