Bangkok, Thailand-based food conglomerate Thai Union posted modest sales growth in the second quarter of 2026, while its gross profit margin hit an all-time high.
The company’s Q2 sales rose 1.4 percent year over year to THB 33.9 billion (USD 1 billion, EUR 880 million), while its organic sales similarly increased 1.5 percent, giving Thai Union its fourth consecutive quarter of organic sales growth. The firm attributed this growth to steady demand in major markets and sales improvements in its petcare, value-added, and ambient categories.
Thai Union’s gross profit, meanwhile, increased 10.2 percent year over year to THB 7.24 billion (USD 216.7 million, EUR 188.2 million), with its gross profit margin reaching a record 21.4 percent.
Thai Union attributed the margin improvement to disciplined pricing, tighter cost controls, a more favorable product mix in key categories, and raw material trends linked to fish and shrimp prices.
However, the record margin did not carry through to the bottom line.
Thai Union’s net profit slipped 0.7 percent year over year to THB 1.26 billion (USD 37.7 million, EUR 32.7 million) as higher selling, general, and administrative (SG&A) expenses and foreign exchange losses limited the benefits accrued from stronger gross profit.
SG&A expenses climbed 9.2 percent year over year to THB 5.1 billion (USD 152.3 million, EUR 132.3 million) mainly due to higher freight costs and marketing spending, as well as the full-quarter impact of U.S. tariffs.
In an attempt to alleviate the latter issue, Thai Union said it filed claims for tariff refunds after U.S. Customs and Border Protection began accepting eligible requests tied to duties imposed under the U.S. International Emergency Economic Powers Act, which were deemed illegal by the U.S. Supreme Court earlier this year. The company said it received a refund in Q2, but the gain to the company would be limited because it plans to return a large portion of the money to its customers through discounts, promotions, and other commercial arrangements.
Foreign exchange also weighed on earnings, with Thai Union recording a THB 71 million (USD 2.1 million, EUR 1.8 million) foreign exchange loss in the three-month period, reversing a THB 68 million (USD 2.04 million, EUR 1.77 million) gain a year earlier.
By category, sales in Thai Union’s ambient seafood segment rose 1.5 percent year over year to THB 16.9 billion (USD 504.3 million, EUR 437.9 million). Sales volume rose 4.4 percent, aided by original equipment manufacturer (OEM) demand, especially for canned tuna and canned salmon, as well as seasonal promotions in Europe.
According to Thai Union, canned sardines and mackerel gave ambient sales another lift, as their lower price points appealed to younger shoppers looking for convenient, shelf-stable sources of protein. Ambient gross profit margin reached a record 23.8 percent, 1.8 percentage points above the same period a year earlier.
Frozen sales totaled just below THB 10 billion (USD 300 million, EUR 259.6 million), marking a 0.4 percent decrease year over year. Sales by volume in the category fell 5.4 percent, leading its gross profit margin to widen to 13.5 percent.
Petcare sales rose 2.3 percent year over year to THB 4.5 billion (USD 134.4 million, EUR 116.7 million), with sales volume up 3.4 percent thanks to rising demand in the U.S. and Europe. Petcare gross profit margin rose to 29.7 percent fueled by a higher share of premium products, which accounted for 52.4 percent of sales, and continued efficiency improvements, according to the company.
Value-added sales rose 5.8 percent year over year to THB 2.5 billion (USD 75 million, EUR 65.2 million), with sales volume up 7.4 percent. However, value-added gross profit margin dropped 4.2 percentage points to 22.1 percent, largely attributable to a weaker ready-to-eat product mix and a year-over-year rise in aluminum prices, Thai Union advised.
For the first half of 2026, Thai Union’s sales rose 4.3 percent year over year to THB 65.9 billion (USD 1.97 billion, EUR 1.71 billion), with organic sales up 5.1 percent and volume up 2.3 percent. Gross profit margin reached 19.8 percent, while H1 net profits increased 3.7 percent to THB 2.38 billion (USD 72.9 million, EUR 62.8 million).
Looking ahead, Thai Union raised its 2026 sales and gross profit margin targets after the strong H1 performance. The company now expects sales to grow 4 percent to 6 percent this year, compared to its previous target of 3 percent to 4 percent. It also lifted its gross profit margin target to 19.5 percent to 20.5 percent from 19 percent to 20 percent.
Thai Union said tuna prices, freight- and oil-related costs, and currency movements remain areas that may affect whether it can achieve the loftier targets.
The company also pointed to the U.K.’s temporary tariff suspension on selected agricultural and food products, including tuna, as potential support for tuna exporters, though any upside would hinge on demand, customer negotiations, product mix, and commercial terms.
Additionally, the U.S. Trade Representative announced a 12.5 percent tariff rate on imports from Thailand, effective 24 July. Thai Union said its current analysis is that the rate should not materially affect its competitive position.
