Thailand-based seafood giant Thai Union has revised its sales outlook downward for the year following continued declines in sales and profits in Q3 2025, and to account for tariff- and foreign exchange-related pressures.
According to its latest result report released on 3 November, Thai Union now expects its 2025 sales to decline by 2 to 4 percent year over year, compared with its previous forecast of a 1 to 2 percent decrease.
The company made the adjustment as it said the global economic outlook remains uncertain and multiple external headwinds are expected to persist through the remainder of 2025. Newly introduced U.S. tariffs have raised import costs for U.S. buyers, leading to price pass-through effects that are dampening consumer demand in the latter half of the year. Meanwhile, the U.S. Federal Reserve’s anticipated rate cuts later in 2025 could weaken the U.S. dollar against major currencies, creating short-term foreign exchange volatility and potential translation impacts on financial results.
Thai Union’s more pessimistic outlook for 2025 comes as it reports a decline in revenue in Q3 2025, extending a downward trend that has persisted since the beginning of the year.
The company’s sales revenue in Q3 2025 edged down 1 percent compared to Q3 2024 to THB 34.501 billion (USD 1.06 billion, EUR 921.8 million), which it said was mainly due to unfavorable foreign exchange impact. The company’s sales in the first nine months of 2025 also dropped 5.5 percent compared to the same period of the prior year to THB 97.680 billion (USD 3.00 billion, EUR 2.61 billion).
Excluding foreign exchange effects, however, its organic sales grew 1.8 percent in Q3 2025 after two consecutive quarters of decline, driven primarily by the petcare and frozen categories, the company said.
Thai Union’s sales of ambient seafood – shelf-stable items sold through retail channels and sometimes wholesalers including canned tuna, sardines, salmon, mackerel, and herring – in Q3 2025 declined 3.8 percent from Q3 2024 to THB 17.247 billion (USD 530.9 million, EUR 460.8 million) primarily driven by unfavorable foreign exchange, lower average selling prices, and a decrease in sales volumes, Thai Union said.
Its sales of ambient seafood over the period spanning January to September also fell 7.3 percent year over year to THB 48.606 billion (USD 1.5 billion, EUR 1.3 billion).
As a result, the gross profit margin of Thai Union’s ambient seafood business in Q3 2025 contracted to 19.4 percent, down from 20.1 percent in Q3 2024, due to the rise in U.S. tariffs and the increase in tuna raw material prices. The gross profit margin in the first nine months, however, rose to 20.3 percent, up from 18.6 percent in the same period in 2024.
Thai Union’s frozen sales revenue in Q3 2025 – comprising sales of frozen shrimp, chilled salmon, feed, and others – increased 5.1 percent year over year to THB 10.334 billion (USD 318 million, EUR 276 million), the first year-over-year growth in 13 quarters. The company attributed the improved performance to an upstick in sales volume and rising demand from its major customers in the U.S. Its frozen sales over January-September, however, slid 4.9 percent compared to the same period of the prior year to THB 28.809 billion (USD 886.7 million, EUR 769.8 million), Thai Union said.
Gross profit margin within the frozen segment rose 13.8 percent in Q3 2025 compared to Q3 2024, the highest level in the past seven quarters. The company said the increase is mainly thanks to the robust performance of the feed and chilled businesses.
Thai Union’s petcare sales in Q3 2025 also surged 6.2 percent year over year to THB 4.624 billion (USD 142.3 million, EUR 123.6 million), supported by a rise in sales volumes, especially in the U.S. and European markets, and an increase in the premium mix. Petcare sales in the first nine months of 2025 grew 3.3 percent year over year to THB 13.185 billion (USD 405.9 million, EUR 352.3 million).
The gross profit margin of its petcare segment in Q3 2025 dropped to 25.6 percent, down from 30.6 percent in Q3 2024, primarily due to tariff support extended to U.S. customers and adverse foreign exchange effects. Thai Union’s gross profit margin between January and September also dropped to 25.3 percent, down from 29.3 percent a year earlier.
The company’s value-added sales revenue – comprising sales of value-added products, packaging, ingredients, byproducts and others – decreased 16 percent year over year in Q3 2025 to THB 2.296 billion (USD 70.7 million, EUR 61.3 million), mainly due to lower demand of value-added products in the U.S. In the first nine months, its value-added sales revenue also fell 9.6 percent year-on-year to THB 7.080 billion (USD 217.9 million, EUR 189.2 million).
Thai Union’s gross profit margin in Q3 2025 was 19 percent, down from 19.5 percent a year earlier. Its gross profit margin between January and September, however, increased to 19.2 percent from 18.5 percent in the same period last year, Thai Union said.
Thai Union’s adjusted net profit in Q3 2025, which excludes transformation costs, also dropped 7.2 percent year-on-year to THB 1.506 billion (USD 46.4 million, EUR 40.2 million), but its adjusted net profit in the first nine months surged 4 percent year over year to THB 4.340 billion (USD 133.6 million, EUR 116 million). The company said it hopes the transformation costs will start to ease in 2026.
“Our Q3 results show that Thai Union is exceptionally resilient and regaining momentum,” Thai Union’s CEO Thiraphong Chansiri said in a release. “Despite macroeconomic challenges, we are seeing encouraging signs of organic growth, improved sales volumes and a very healthy gross profit margin of 19 percent. It confirms we are on the right track with our strategy to develop our operational agility, strengthen our core and re-energize our brands.”
In September 2025, Thai Union secured THB 19 billion (USD 584.9 million, EUR 507.8 million) in blue financing, including a THB 10 billion (USD 307.9 million, EUR 267.3 million) sustainability-linked loan and THB 9 billion (USD 277.1 million, EUR 240.6 million) from blue and sustainability-linked bonds, marking Thailand’s first issuance of this type.
Also in September, Japan’s Mitsubishi Corporation offered to buy Thai Union shares at THB 12.50 (USD 0.38, EUR 0.33) each to boost its stake to 20 percent, but the bid was automatically cancelled on 29 September due to limited investor uptake, Thai Union said.
