Samut Sakhon, Thailand-based food and beverage manufacturing company Thai Union reported profit growth in the second quarter of this year, even as it experienced a year-over-year sales drop in the period.
In its latest results report, the firm attributed its ability to still turn a profit amid the sales dip to strong cost discipline and improved gross margins in the face of persistent geopolitical and macroeconomic headwinds.
The company’s gross profit margin (GPM) hit an all-time quarterly high of 19.7 percent in Q2 2025, up from 18.5 percent a year earlier, driven by a favorable product mix and lower raw material costs. Its GPM in the first half of this year also achieved a record high of 19.3 percent, higher than the 17.9 percent it achieved in H1 2024, Thai Union said.
Its adjusted operating profit in the quarter grew 3.2 percent year over year to THB 2.1 billion (USD 66.2 million, EUR 57.2 million), supported by cost efficiencies and lower raw material prices. The adjusted operating profit for the first half of the year, however, was down 8.9 percent year over year to THB 3.3 billion (USD 103.2 million, EUR 89.2 million).
Thai Union’s adjusted net profit in Q2 increased 13.2 percent year over year to THB 1.5 billion (USD 46.3 million, EUR 40 million).
The GPM and profit surges resulted in an 18 percent spike in earnings per share for Q2 2025, Thai Union said.
“In line with changes in the global trade environment, our strategic transformation is delivering tangible value,” Thai Union CEO Thiraphong Chansiri said in a release. “We have become a more agile and efficient organization. This focus on strengthening our core operations allowed us to achieve a significant lift in our gross profit margin, proving that we are building a fundamentally stronger company for the future.”
Still, Thai Union acknowledged that economic uncertainty continued to pose challenges in the three-month period.
The company’s sales dropped 5.4 percent year over year to THB 33.4 billion (USD 1 billion, EUR 891.9 million) in Q2, which was largely attributed to unfavorable foreign exchange rates and a decrease in organic sales, particularly stemming from lower demand for frozen products in the U.S. market. The company’s H1 sales stood at THB 63.2 billion (USD 2 billion, EUR 1.7 billion), marking a 7.8 percent drop year over year.
By segment, Thai Union’s sales of ambient seafood – which comprise shelf-stable items sold through retail channels and wholesalers – fell 4.5 percent year over year to THB 16.6 billion (USD 512.6 million, EUR 443.4 million), primarily due to lower average selling prices, Thai Union said. Its sales of ambient seafood in H1 also contracted 9.2 percent year over year to THB 31.4 billion (USD 968.4 million, EUR 837.6 million).
Frozen sales saw a decline of 7.4 percent year over year to THB 10 billion (USD 309.9 million, EUR 268 million) in Q2. The firm said one of the main contributing factors for decreased sales in the category was a 7.5 percent increase in shrimp prices compared to last year, prompting consumers, especially U.S. buyers of private-label shrimp, to tighten their spending. Its frozen sales in H1 dropped 9.7 percent year over year to THB 18.5 billion (USD 570.6 million, EUR 493.4 million).
Thai Union’s petcare sales reached THB 4.4 billion (USD 135.5 million, EUR 117.2 million) in Q2 2025, marking a slight decrease of 1.5 percent year over year, mainly due to the same factors other segments experienced, as well as exceptionally strong premium product sales during the same period last year by comparison. For the first half, petcare sales increased 1.8 percent to THB 8.6 billion (USD 264.4 million, EUR 228.6 million).
The company’s value-added sales reached THB 2.4 billion (USD 73.2 million, EUR 63.3 million) in Q2, representing a 9.2 percent dip year over year. Its H1 sales of value-added products contracted 6.2 percent year over year to THB 4.8 billion (USD 147.7 million, EUR 127.7 million).
The company released its Q2 results shortly after the U.S. imposed a 19 percent reciprocal tariff rate on imports from Thailand.
Thai Union noted that while the move constituted a major policy shift, it offered more clarity and was less severe than initially expected.
In the meantime, the firm is optimizing its global supply chain by leveraging its manufacturing presence in 14 countries, including in the U.S. Its manufacturing facilities face U.S. tariffs of 19 percent for Thailand, 15 percent for Ghana, and 10 percent for the Seychelles. These rates are on par with, or better than those for, key exporters like Vietnam, which is facing 20 percent tariffs, and Indonesia at 19 percent.
However, the new tariffs are expected to impact the company’s overall performance, particularly its U.S. exports.
As a result, Thai Union has revised its 2025 guidance, projecting a sales decline of 1 percent to 2 percent compared to 2024 assuming a 10 percent tariff rate from April to July and a 19 percent rate from August onward. This contrasts with earlier forecasts of 1 percent to 3 percent growth that assumed 10 percent tariffs from April to December.
The company also recently announced that Mitsubishi Corporation has upped its stake in Thai Union from just over 6 percent to 20 percent.
“Thai Union’s strategic alliance with Mitsubishi Corporation is a testament to the strength of our business and our shared vision for the future of the seafood industry,” Chansiri said.
