Thai Union sees growth boosted by rising tuna prices and business with long-life products

Thai Union recently announced its financial results for the first half of fiscal year 2024, reporting a 3.6% year-on-year increase in revenue to THB (US$35.3 billion), a 10.6% year-on-year increase in operating profit to THB (US$1.97 billion), and a 14.2% year-on-year increase in net profit to THB (US$1.22 billion).

“The reasons for this are the continued momentum in our Ambient business and the strong performance of the Value-added and PetCare categories,” ​Ludovic Garnier, CFO of Thai Union, addressed investors on the company's recent conference call.

“In particular, the second quarter of 2024 showed accelerated sales growth and robust [profit margin] Rise to the highest level in 12 quarters [due to] More favorable exchange rates compared to the previous year, as well as higher selling prices and the recovery of demand in markets such as Europe and the Middle East.​

“Sales in the first half of the year were undoubtedly led by ambient products [such as] Canned tuna, sardines and mackerel, and canned and bagged salmon; over 50% of sales come from this category.​

“Rising global tuna prices have also had a positive impact on profit margins as these prices have increased steadily year-to-date from US$1,333 per tonne in the first quarter to US$1,478 per tonne this quarter – this is due to the impact of low-cost inventory levels as well as a corresponding increase in selling prices to match the current market.”​

The company also stressed that its value-added products business – which focuses on higher-value and higher-cost products such as plant-based foods and fish oils – is an important category for future growth.