Samut Sakhon, Thailand-based food and beverage manufacturing company Thai Union reported a decline in its sales and profits in the first quarter of 2025 as the company said it was affected by tariffs announced by the administration of U.S. President Donald Trump during the period.
According to Thai Union’s Q1 2025 results report released on 9 May, its sales in the quarter dropped 10.3 percent year over year to THB 29.8 billion (USD 902.9 million, EUR 802.8 million).
By category, the company’s sales of ambient products particularly struggled in the period, contracting 14 percent from a year earlier to THB 14.8 billion (USD 447.2 million, EUR 397.7 million) in Q1 2025, which the company attributed to high sales in Q1 2024 that skewed this year’s numbers, lower sales volumes, a drop in average selling prices, and unfavorable foreign exchange rates.
Thai Union’s Q1 sales of frozen products totaled THB 8.4 billion (USD 255.7 million, EUR 227.4 million), which was down 12.2 percent year over year. The company attributed the dip to lower private-label sales.
The company’s sales of value-added products in the period also contracted 3.1 percent to THB 2.4 billion (USD 73 million, EUR 64.9 million), largely thanks to the decline realized in sales prices across all segments.
Sales of its petcare products, however, rose 5.5 percent year over year in Q1 to THB 4.2 billion (USD 126.4 million, EUR 117.3 million).
Thai Union said its gross profit in the quarter amounted to THB 5.6 billion (USD 170 million, EUR 151 million), which was down 2.3 percent year over year and was primarily caused by lower profitability in its frozen and value-added segments. Its net profit in Q1 fell further, dropping 11.6 percent year over year to THB 1.02 billion (USD 30.9 million, EUR 27.5 million).
Thai Union’s lower sales and profits occurred as the company said it and other exporters were affected by the Trump administration’s tariff policies announced in the quarter.
Consequently, Thai Union has revised its 2025 guidance to account for the implementation of U.S. tariffs, assuming a full-year impact of a flat 10 percent rate. Under the new guidance, Thai Union’s estimated annual sales growth this year is between 1 percent and 3 percent, which is lower than the initially expected range of between 3 percent and 4 percent.
Thai Union explained in its Q1 results that it had previously prepared for the tariffs by building up inventory across all product categories in the U.S., with finished goods currently in the market covering four to six months of sales and helping to mitigate short-term risks.
The company also said it continues to leverage its global processing and sourcing network to minimize disruptions, with 15 production facilities across 13 countries.
“When we embarked on our transformation journey, we knew increasing our agility, efficiency, and speed was essential. In today’s world, that is never more true,” Thai Union CEO Thiraphong Chansiri said. “We have laid solid foundations, which are now serving us well and delivering value which will only increase further in the future.”
Elsewhere in the firm, in February, Thai Union was recognized among the world’s most sustainable food product companies, placing in the top 1 percent of the S&P Global Sustainability Yearbook.
Strengthening that framework, the company announced on 8 May that it secured a blue loan of USD 150 million (EUR 133.3 million) from the Asian Development Bank to promote sustainable shrimp production.
Thai Union said it will use the funds to expand its sourcing of sustainable shrimp – specifically those certified under programs recognized by the Global Sustainable Seafood Initiative, such as the Aquaculture Stewardship Council and Best Aquaculture Practices, or sourced from farms participating in credible aquaculture improvement projects.
