Thai Union Group reported record sales in the third quarter of 2026, supported by growth in its ambient seafood, petcare, and value-added business segments, even with frozen seafood sales declining amid weaker U.S. shrimp demand and pressure on its feed business.
The Bangkok-based seafood group posted sales of THB 35.7 billion (USD 1.06 billion, EUR 945.2 million) in Q3, up 3.4 percent year over year.
The increase marked Thai Union's third consecutive quarter of year-over-year sales growth, even as overall sales volume fell 1.6 percent to 238,340 metric tons (MT). The company attributed the divergence between sales value and volume to pricing adjustments and a more favorable business mix.
Gross profit rose 11.4 percent year over year in the period to THB 7.3 billion (USD 215.8 million, EUR 193.2 million), while gross profit margin widened to 20.4 percent from 19 percent a year earlier.
“We delivered some of our strongest sales ever and maintained our gross profit margin above 20 percent for a second consecutive quarter,” Thai Union President and CEO Thiraphong Chansiri said in a statement.
Operating profit surged 16.2 percent year over year to THB 2.1 billion (USD 61.8 million, EUR 55.3 million), while reported net profit rose 3.2 percent to THB 1.35 billion (USD 39.8 million, EUR 35.7 million).
He attributed the performance partly to the company's Strategy 2030 initiatives, including investment in brands and premium products, production streamlining, and efforts to ensure synergy across the group.
However, higher operating expenses, mainly due to increased freight costs and marketing investments, as well as foreign exchange losses, partly offset the improvement in gross profit.
By segment, ambient seafood remained Thai Union's largest category by sales, generating THB 17.9 billion (USD 530 million, EUR 474.5 million), which was up 3.9 percent year over year despite a 4.4 percent decrease in sales volume.
Sales of branded ambient products surged 6.9 percent year over year as Thai Union invested in marketing, introduced new product formats, and updated its packaging and brand positioning. Its efforts included broadening King Oscar's premium range in the U.S. and strengthening Parmentier's position in the premium segment.
Ambient gross profit margin (GPM) rose to 21.9 percent from 19.4 percent a year earlier, reflecting sales growth in premium and mainstream products and improved production efficiency.
Conversely, frozen seafood and feed sales contracted 4 percent year over year to THB 9.9 billion (USD 293.5 million, EUR 262.8 million), while sales volume fell 10.6 percent. The decline reflected weaker U.S. shrimp demand, partly offset by rising demand in Thailand, as well as weaker shrimp feed sales and competitive pressure in the fish feed market, according to the firm.
Frozen GPM narrowed to 13.4 percent from 13.8 percent a year earlier.
Elsewhere, petcare sales increased 10.4 percent year over year to THB 5.1 billion (USD 151.1 million, EUR 135.2 million), with sales volume rising 11.4 percent on stronger demand in the U.S. and Europe, expansion of its customer base, and new products.
Petcare GPM stood at 25.7 percent, remaining almost unchanged from a year earlier but down from 29.7 percent quarter over quarter. Thai Union said the previous quarter had benefited from a U.S. tariff refund, while higher raw material and packaging costs weighed on Q3 margins.
The segment is set to benefit even further with Thai Union's petcare subsidiary i-Tail Corporation announcing the acquisition of U.S.-based premium pet treat manufacturer Phelps Pet Products for USD 160 million (EUR 143.2 million) in late October.
"As pet owners increasingly treat their pets as family, demand continues to grow for a wider range of treats, snacks, and innovative pet food solutions,” i-Tail CEO Roy Chan said in a release as the deal was announced. “Phelps is a strong strategic fit for i-Tail, bringing differentiated products, expertise, and market capabilities that complement our strengths and deepen our presence in one of the world's largest pet food markets.”
Returning to Q3, value-added sales climbed 19.5 percent year over year to THB 2.74 billion (USD 81.2 million, EUR 72.7 million), with volume rising 10.6 percent. Demand strengthened across the category, particularly for value-added and packaged products, while Thai Union’s ingredients business benefited from robust fish oil demand.
Higher sales and changes in product mix, particularly within the ingredients business, helped lift the category's GPM to 26.8 percent from 25.6 percent a year earlier.
The U.S. and Canada remained Thai Union's largest market, accounting for 40 percent of group sales, with revenue rising 8.2 percent year over year to THB 14.4 billion (USD 425.7 million, EUR 381.1 million). Sales in Thailand jumped 26.7 percent, while European sales dropped 1.1 percent.
For the first nine months of the year, Thai Union's sales rose 4 percent to THB 101.6 billion (USD 3.01 billion, EUR 2.69 billion), while GPM reached a nine-month record of 20 percent, compared to 19.2 percent a year earlier.
Operating profit increased 17.2 percent to THB 5.4 billion (USD 159.8 million, EUR 143.1 million), while net profit grew 3.5 percent to THB 3.7 billion (USD 110.2 million, EUR 98.6 million).
“With the strong performance we have delivered through the first nine months, we remain confident in our full-year guidance,” Chansiri said, which includes a full-year sales growth target of 4 percent to 6 percent and GPM guidance of 19.5 percent to 20.5 percent.
He added that Thai Union was prioritizing investment in higher-value businesses, strengthening its brands, and directing capital toward opportunities offering stronger potential returns.
As a slight caveat to its positive guidance, Thai Union said that fluctuations in seafood raw material prices, shipping and energy costs, exchange rates, and changes in trade policy could affect its business. It also cautioned that any gains from a potential Thailand-E.U. free trade agreement and the U.K.'s announcement of tariff suspensions earlier this year would hinge on how the measures are implemented, market demand, customer negotiations, and the mix of products sold.
