Thai Union Group PCL. is one of the world’s largest seafood companies who deliver seafood products with innovation, high product quality, delicious taste, and health benefits to consumers for more than 47 years. The company owns a portfolio of leading brands in various markets around the world and has a global sourcing, production, and distribution network. Thai Union’s core businesses include (1) Ambient (2) Frozen (3) PetCare and (4) Value-added. With corporate sustainability goals, Thai Union has a long-term commitment to be the most trusted seafood leader and conservation of natural resources for future generations.
| 9M24 | 9M23 | 2023 | 2022 |
|---|
| Revenues | 104,211.15 | 101,342.23 | 137,212.85 | 156,560.31 |
| Expenses | 97,766.53 | 95,892.77 | 129,241.14 | 147,731.47 |
| Net Profit (Loss) | 3,771.91 | 3,256.14 | -13,933.21 | 7,138.00 |
| Assets | 155,543.32 | 183,679.13 | 165,450.32 | 182,569.47 |
| Liabilities | 92,922.28 | 101,123.13 | 99,433.08 | 94,438.04 |
| Shareholders' Equity | 55,059.03 | 75,466.20 | 58,628.23 | 80,642.28 |
| Operating | 9,658.53 | 7,480.07 | 11,241.45 | 5,870.75 |
| Investing | 978.37 | -6,798.24 | -6,578.86 | -5,414.69 |
| Financing | -11,703.21 | -4,660.60 | -2,404.67 | 2,741.95 |
| EPS (Baht) | 0.81 | 0.67 | -3.15 | 1.47 |
| GP Margin (%) | 18.45 | 16.79 | 17.06 | 17.49 |
| NP Margin (%) | 4.43 | 3.70 | -9.62 | 4.73 |
| D/E Ratio (x) | 1.48 | 1.22 | 1.51 | 1.07 |
| ROE (%) | -20.56 | 6.59 | -20.01 | 10.20 |
| ROA (%) | 6.00 | 3.65 | 4.66 | 4.90 |
Amid challenges and the uncertain global economic climate, Thai Union believes that our focus and strength in sustainability and innovation will keep driving us forward. We firmly believe that, together, sustainability and innovation will create new opportunities for our business to grow and emerge stronger than ever.
As part of our guidance for 2024: Thai Union has revised its FY 2024 guidance upwards, sales from 4.0 – 5.0% YoY growth to 3.0 – 4.0% growth YoY. We also revised the gross profit margin level from approximately 18.0 – 18.5% to 18.5 – 19.0% and SG&A from 12.0 – 12.5% to 12.5 – 13.0%. We maintained a slight increase in the effective interest rate at 0.0 - 0.5% in 2024. Additionally, we revised CAPEX from THB 4.0 – 4.5bn to THB 3.5 – 4.0bn as we focus on carrying out capital expenditure related to both existing and new business as well as dividend policy at least 50% dividend payout ratio.
- Thai Union hosted SeaBOS at our booth during the Sustainability Expo 2024 to provide updates on the progress made toward achieving our goal under SeaChange® 2030, our global sustainability strategy.
- Thai Union announced new partnerships to tackle plastic pollution, joining force with Seven Clean Seas and Second Life to implement innovative solutions that significantly reduce ocean plastic waste.
- Thai Union hosted officials from Thai Ministry of Labour to showcase its sustainable growth initiatives. Key highlights of the visit included Thai Union’s vision, the zero-wastewater discharge project, and knowledge sharing.
- Sales increased 2.7% YoY to THB 34,840mn, driven by 3.1% YoY organic growth, with FX having a slight negative impact of 0.4% YoY on total sales in this quarter.
- Gross profit margin reached a record – high of 19.5%, supported by demand recovery across many regions and lower raw material prices.
- Net profit was THB 1,400mn, with earnings per share at THB 0.30, representing 4.4% YoY and 8.1% YoY growth, respectively, and marking 3 consecutive quarters of accelerated YoY growth.
- Free cash flow remained strong from the previous quarter, with THB 8,052mn free cash flow in 9M 2024, and net interest-bearing debt to equity was healthy at 0.79x.
Thai Union reported Q3 2024 quarterly sales of THB 34,840mn, grew by 2.7% YoY, supported by 3.1% YoY organic sales growth due to higher demand in Ambient, PetCare, and Value-added categories. However, this was the first time in 10 quarters that Thai Union faced a negative impact from FX on sales. Gross profit in Q3 2024 increased by 9.0% YoY to THB 6,793mn, achieving a record-high quarterly GPM of 19.5%. Therefore, net profit increased to THB 1,400mn, representing a growth of 4.4% YoY and making growth for 3 consecutive quarters.
- Thai Union has launched its Strategy 2030, a growth-focused strategy built on revitalizing the core business, driving the next wave of growth, and exploring new frontiers, supported by a strong foundation of enables. To execute the strategy, Thai Union has kicked off two transformation programs including Project Sonar – the Group’s transformation program to establish a solid foundation for growth – and Project Tailwind – the PetCare growth acceleration program.
- Thai Union has officially opened its Innovation Hub in Wageningen, Netherlands, marking the latest expansion of its global innovation network. The Innovation Hub focuses on product and packaging innovation for the Group’s ambient seafood brands.
Thai Union continues to embed a risk culture in our business and operations at all levels, starting by making it part of organizational culture, policy, and structures, with a risk management framework in accordance with COSO ERM, as well as monitoring risk indicators and performance on regular basis, according to the risk management plan, to mitigate the impact and/or the likelihood of risks. The key risks are the rising of increasing prices of key material costs as well as the rising interest rate, supply chain challenges, while core inflation and energy prices still be the key focus. However, freight cost and transit time are normalizing at a lower level than the pre-covid level. Lately in July 2023, Thai Union has also announced a major update of sustainability strategy “SeaChange®” to cover the environment and social risk.
- Outstanding CEO and Best CFO in the Agro & Food industry from Investment Analysts Association (IAA).
- Excellence rating (5-star) in corporate governance.
| as of 30/09/24 | TU | FOOD | SET |
|---|---|---|---|
| P/E (X) | - | 36.54 | 18.03 |
| P/BV (X) | 1.13 | 1.52 | 1.37 |
| Dividend yield (%) | 3.87 | 2.63 | 3.16 |
| 30/09/24 | 28/12/23 | 30/12/22 | |
|---|---|---|---|
| Market Cap (MB) | 65,044.94 | 69,826.99 | 80,643.68 |
| Price (B/Share) | 14.60 | 15.00 | 16.90 |
| P/E (X) | - | 14.87 | 10.05 |
| P/BV (X) | 1.13 | 0.89 | 1.29 |
· A with stable outlook (rated by JCR)