Thai Union Group Public Company Limited · SET:TU
Thai Union Group Public — Thai Union Group PCL — Q1 2025 Earnings Presentation
48 slides from Thai Union Group Public's earnings presentation, May 9, 2025
Slide 1: Q1 25 Analyst Meeting
Q1 25 Analyst Meeting Thai Union Group PCL. May 9, 2025 Q1 25 Analyst Meeting Investor Relations Department
Slide 2: Disclaimer
Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are base
Slide 3: Q1 25 Key highlights and key developments
Q1 25 Key highlights and key developments Q1 25 Analyst Meeting Investor Relations Department
Slide 4: CEO quote on challenges and 2030 strategy
“Since early 2025, businesses globally — including Thai Union — have faced challenges from economic headwinds and evolving trade policies. We have responded with determination, using this as a catalyst to accelerate our transformation. With over 48 years of seafood expertise and a clear focus on our
Slide 5: Q1 25: GPM record-high for Q1, adjusted net profit up 9%
Q1 25: GPM reached record-high for Q1 and adjusted net profit grew by 9% YoY, while topline softened as previously communicated in Q4 24 Sales Gross Profit Adjusted Adjusted Operating Profit* Net Profit* 29,789 5,611 1,199 1,317 THB mn THB mn THB mn THB mn 18.8% 4.0% 4.4% GPM OPM NPM -10.3% YoY
Slide 6: Excluding transformation costs, Q1 25 net profit rose 8.9% YoY
Excluding transformation costs, Q1 25 net profit rose by 8.9% YoY to THB 1.3bn Bridge Net Profit (THB mn) +8.9% YoY 1,317 -11.6% YoY 1,209 -56 1,153 +298 1,019 +44 -636 +550 -183 +62 -103 +132 Q1 24 Trans- Q1 24 Operating FX gain Other Share Lower Income tax NCI Q1 25 Trans- Q1 25 Adjusted formation
Slide 7: Increasing the potential size of the 4th share buyback program
Increasing the potential size of the 4th share buyback program to optimize the use of excess liquidity and strengthen shareholder and investor confidence Increase share buyback limit Completed Completed Completed Program 4 is in process Program 1 Program 2 Program 3 New Previous Apr 3, 25 Announceme
Slide 8: SONAR and Tailwind savings and OP uplift targets
In 2025, SONAR targets USD 15mn in savings (USD 1.3mn in Q1), while Tailwind aims for USD 17mn OP uplift (USD 3.5mn in Q1) PROJECT SONAR (ending 2025) PROJECT TAILWIND (ending 2026) Group transformation program to lay the foundations PetCare transformation program to accelerate growth 2025 Target: ~
Slide 9: JCR 'A'/Stable rating and shrimp industry collaboration
TU receives ‘A’/Stable rating from JCR and joins forces with Thai Government to revitalize shrimp industry JCR affirmed TU’s foreign currency issuer TU welcomed Prime Minister Paetongtarn credit rating at A with Stable Outlook, Shinawatra to Songkhla factory, where we reflecting the Company’s strong
Slide 10: TU ranked top 1% by S&P Global for sustainability
TU ranked in the top 1% by S&P Global for sustainability, while driving global ocean action and supporting regional relief efforts TU attended the 12th World Ocean Summit in Tokyo, which focused on a sustainable ocean economy and achieving the 2030 targets of *UN SDG 14. TU ranked in the top 1% of S
Slide 11: Q1 25 Financial performance
Q1 25 Financial performance Q2 24 Q1 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 12: CFO quote on Q1 2025
“Thai Union navigated a challenging environment in Q1 2025, as previously communicated, with lower volumes driven by rising raw material prices. Despite this, our gross profit margin remained strong, reaching a record high for any first quarter. This reflects the effectiveness of our pricing strateg
Slide 13: Record-breaking first-quarter GPM despite challenging sales
Delivering record-breaking first-quarter GPM, despite a challenging sales environment 19.5% 19.0% 18.5% 18.7% 18.8% 18.0% 18.2% 18.2% 18.4% 17.3% 17.7% 17.5% 17.3% 17.8% 16.9% 16.9% GPM 15.1% 6.5% 6.2% Adjusted NPM* 5.8% 5.4% 5.0% 4.8% 4.7% 4.4% 4.2% 4.0% 3.8% 4.3% 3.1% 3.1% 4.2% 3.6% NPM 2.3% 3.5%
Slide 14: Soft sales growth from weaker organic sales and FX
Q1 25: Soft sales growth was mainly attributed to weaker organic sales and unfavorable FX impacts from the Thai Baht appreciation Sales growth (% YoY) Sales dropped 10.3% YoY in Q1 25, while sales volume slightly increased by 0.6% YoY. Organic growth Organic sales declined YoY mainly from soft perfo
Slide 15: Tuna and shrimp prices
Tuna prices increased both YoY, mainly due to lower catching rate since the beginning of the year, while shrimp prices remained at a high level Tuna (Skipjack; USD/ton) Q2 23 Shrimp (60pcs/kg; THB/kg) FY 24 actual: 144 Quarterly avg. Quarterly avg. FY 25 target: 148 Monthly avg. 2,000 FY 24 actual:
Slide 16: Thai Baht appreciation against key currencies
Overall, the Thai Baht appreciates against all key currencies YoY, especially EUR and GBP which dropped by 7.8% YoY and 5.5% YoY, respectively USD/THB Quarterly avg. EUR/THB Quarterly avg. Avg. in Q1 25: 1 USD / 34.0 THB (-4.8% YoY) Monthly avg. Avg. in Q1 25: 1 EUR / 35.7 THB (-7.8% YoY) Monthly av
Slide 17: Net debt to EBITDA, ROE and working capital
Strategic use of call options on perpetual bonds boosts net debt to EBITDA for growth, while net debt to equity has reached our comfort level for several years ROE Inventory Days Net Debt to EBITDA Net debt to EBITDA ratio temporarily increased due to the 164 exercise of a call option on perpetual d
Slide 18: Net debt rose to THB 56.2bn
Net debt rose to THB 56.2bn, primarily due to temporary negative FCF generation and share buyback program. Net Debt/Equity rose to 1.00x, mostly from treasury share buyback program, but remains at satisfactory level ND/E 0.94 x Income tax paid and ND/E 1.00 x Free Cash Flow (FCF) THB -551mn Kd* = 3.
Slide 19: Restructuring of shareholding in Avanti
Due to regulatory changes in India, we were required to restructure our shareholding in Avanti. While our ownership in Avanti remains unchanged, the restructuring triggered a THB 381mn one-off positive non-cash impact in Q1 25 Restructuring of investment in Avanti Feed Limited (AFL) Change of regula
Slide 20: USD 150mn Blue Loan from Asian Development Bank
Thai Union receives landmark USD 150mn Blue Loan from Asian Development Bank (ADB) to advance sustainable shrimp and climate goals The first-ever Blue Loan by ADB to The first financing framework the seafood industry in Thailand, 1st for sustainable finance in the aligned with Thailand’s draft Taxon
Slide 21: Q1 25 Business performance
Q1 25 Business performance Q3 24 Q1 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 22: High-margin categories now 22% of portfolio
Our high-margin categories, petcare and value-added, now represent 22% of our portfolio, with ambition to rise to 25 – 30% by 2030 Total Q1 25 sales: THB 29,789 mn Ambient Frozen PetCare Value-added THB 14,762mn THB 8,441 mn THB 4,174 mn THB 2,412 mn 19.4% 12.4% 24.5% 27.9% GPM GPM GPM GPM 49.6% (51
Slide 23: Ambient: GPM solid at 19.4%
Q1 25 Ambient: GPM remained solid at 19.4% amid softer sales across key regions Sales (THB mn) and GPM (%) YoY analysis: 20.1% 20.6% 18.9% 19.4% • In Q1 25, Ambient sales dropped by 14.0% YoY, primarily due to 16.6% the exceptionally high base in Q1 24, a 7.1% YoY decline in sales volume, lower aver
Slide 24: Frozen: GPM strengthened to 12.4%
Q1 25 Frozen: GPM strengthened to 12.4%, supported by Feed and Chilled business growth despite softer topline Sales (THB mn) and GPM (%) YoY analysis: • Following the rightsizing efforts that began in 2023 and concluded in 11.8% 12.0% 12.1% 12.4% 2024, the Frozen category has now established a new b
Slide 25: PetCare: sales growth from volume expansion
Q1 25 PetCare: Sales growth supported by volume expansion; premiumization strategy remains in a target range at 47 – 50% Sales (THB mn) and GPM (%) YoY analysis: 31.3% 30.6% • In Q1 25, PetCare sales increased by 5.5% YoY, driven by 13.2% 25.7% 26.1% 24.5% YoY increase in sales volume primarily supp
Slide 26: Value-added: strong volume growth, GPM above 27%
Q1 25 Value-added: Strong volume continued growing for three consecutive quarters, driven by value-added and by-product segments, with GPM solid above 27% Sales (THB mn) and GPM (%) YoY analysis: 29.5% 27.9% • In Q1 25, Value-added sales decreased by 3.1% YoY, primarily due 26.5% 25.1% 23.5% to lowe
Slide 27: Outlook
Outlook Q2 24 Q1 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 28: Updated 2025 guidance reflects 10% U.S. tariff scenario
Updated 2025 guidance reflects 10% U.S. Based on current information: tariff scenario and ongoing market volatility High volatility around tariff information Previous 10% Flat tariff 2025 Guidance the whole year Key drivers disclosure Scenario linked to the U.S. tariffs Sales growth + 3 - 4% YoY + 1
Slide 29: Businesses in the U.S. represent 38% of total sales
Businesses in the U.S. of TU represented 38% of total sales, of which 18% have been processed in TU facilities and 20% processed outside of TU facilities Announcement of the U.S. reciprocal tariffs: U.S. sales in 2024: • April 2: the U.S. announced a 10% baseline import tariff on all countries, effe
Slide 30: Ambient: global manufacturing network and U.S. inventory build-up
Ambient: TU leverages its global manufacturing network, and has proactively built up inventory across all U.S. categories in readiness for U.S. tariff measures Changes in the U.S. tariffs Implication Country Base tariffs* Reciprocal tariffs Total tariffs • Southeast Asia (SEA) is a key global seafoo
Slide 31: Frozen: competitive advantage over higher-tariff peers
Frozen: Amid U.S. tariff changes, TU holds a competitive advantage over higher- tariff peers and continues to gain customer supports Changes in the U.S. tariffs Implication Anti-dumping Countervailing Reciprocal Country Total tariffs • Import duties, including anti-dumping and countervailing duties,
Slide 32: PetCare: lowest tariffs among top pet food exporters
PetCare: TU is well-positioned in the PetCare business, with the lowest tariffs among top pet food exporters and unique access to raw materials Changes in the U.S. tariffs Implication Country Base tariffs* Reciprocal tariffs Total tariffs • Thailand, Vietnam and China are the top three pet food expo
Slide 33: Q&A
Q&A Q&A Q1 25 Analyst Meeting Investor Relations Department
Slide 34: Appendix
Appendix Q2 24 Q1 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 35: Adjusted operating profit and net profit excluding transformation costs
Excluding transformation costs, Q1 25 adjusted operating profit and net profit would be THB 1,199mn (-24.7% YoY) and THB 1,317mn (+8.9% YoY), respectively THB mn Q1 24 Q1 25 %YoY Total sales 33,220 29,789 -10.3% Gross profit 5,742 5,611 -2.3% SG&A (4,205) (4,710) 12.0% Operating profit 1,537 901 -41
Slide 36: Portfolio well-diversified across all regions
Our portfolio is well-diversified across all regions 16 Production locations ~40% ~27% North America Europe 5 Asia • Indonesia • India • Thailand (2) • Vietnam 10 Europe & Africa • France • Poland • Germany (2) • Portugal • Ghana • Seychelles • Lithuania • Russia • Norway Pacific Ocean Pacific Ocean
Slide 37: Sales breakdown by geography and business segments
Sales breakdown by geography and business segments Sales breakdown by geography Sales breakdown by business segment 9.5% 10.1% 9.7% 9.9% 9.0% 10.8% The U.S. & Canada 2.4% 5.1% 3.2% 2.5% 4.1% 6.1% 3.6% 5.8% 6.0% 5.6% 5.9% 5.8% Europe 10.3% 10.5% 11.5% 11.0% 10.9% 12.4% Thailand Brand Japan Brand 28.3
Slide 38: The U.S. & Canada and Europe sales
The U.S. & Canada: Sales declined primarily due to Europe: Sales dropped mainly from Ambient, Frozen, soft demand cross all categories, except for PetCare and PetCare businesses -6.6% YoY -17.5% YoY 14,130 14,185 11,414 12,833 13,327 10,215 11,981 9,829 10,034 8,109 Sales Sales Q1 24 Q2 24 Q3 24 Q4
Slide 39: Thailand and Japan, EM and rest of world sales
Thailand: Sales grew across all categories except for Japan, Emerging Markets (EM) and the rest of the Value-added world: Sales dropped across all categories -13.5% YoY +2.2% YoY 6,951 7,291 6,874 4,007 3,997 3,606 3,619 3,685 6,120 6,014 Sales Sales Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q
Slide 40: Ambient: GPM healthy despite sales pressure
Ambient: GPM remained healthy despite short-term sales pressure from external factors A sharp drop Normalization effect from Increasing in tuna price High base for Recognizing low- 2020’s pantry loading selling price ~USD 700 Ambient together cost inventory & Strong recovery in during the pandemic a
Slide 41: Ambient GPM remained solid at 19.4% versus fish prices
Despite fish prices being higher than customers anticipated, Ambient GPM remained solid at 19.4% 23.3% 22.9% 22.4% 21.5% 22.0% 22.7% 21.7% 21.2% 19.6% 19.4% 19.9% 20.4% 20.1% 20.6% 19.4% 18.4% 18.9% 18.6% 18.9% 17.7% 17.1% 17.6% 20.7% 20.1% 20.2% 19.5% 18.0%18.7% 18.0% 17.4% 16.5% 16.9% 16.7% 16.6%
Slide 42: Frozen: GPM stabilized at ~12%
Frozen: Following rightsizing, GPM stabilized at ~12%, though sales remain challenged by soft demand Reduced Market price Market price stabilization demand for Recovery from correction in the frozen food robust food service and reduced Strategic rightsizing Post-rightsizing, U.S. shrimp U.S., height
Slide 43: PetCare: strong U.S. sales growth
PetCare: Sales grew strongly in the U.S. market, driven by higher demand, new product launches, and private label price adjustments Signs of Strong demand for pet food, Back to growth and High base for pet food and Inventory recovery supported by COVID-19 premium mix adjustment inventory build up de
Slide 44: Value-added: on track with 2030 target
Value-added: Sales are on track and in line with the 2030 target Established Thai Union Record high Strong GPM driven by Record high GPM GPM temporarily Lifescience (supplement) quarterly sales with our strategy to prioritize due to strong declined due to higher and launched alternative exceptional
Slide 45: Freight rates fell YoY in Q1 25
Despite several headwinds, freight rates fell YoY in Q1 25; no impact to TU operations Logistics market Key topics in logistics market Freight cost: Thailand to the U.S. (East & West Coast) Red Sea situation U.S. Tariffs increase on Chinese imports East West Q1 25 %Change Most container carriers div
Slide 46: Effective tax rate and BEPS 2.0 Pillar 2
Effective tax rate for full-year 2025 is expected to be lower than previously estimated, with no top-up tax impact in Q1 25 BEPS BEPS2.0 2.0- Pillar Pillar 22 Application ApplicationofofBEPS BEPS 2.0 2.0-Pillar Pillar22 Base Erosion and Profit Shifting (“BEPS”) 2.0 - For TU Group, the impact from BE
Slide 47: Higher proportion of floating-rate short-term loans
Temporarily higher proportion of floating-rate short-term loans amid low-interest rate environment (THB mn) By Currency By Maturity By Interest Rate 73,304 73,304 68,512 7.0% 68,512 Short-term loan 0.4% 7.5% Current portion of 0.1% 16.6% 29.5% long-term debt & 24.8% finance lease 17.7% Long-term deb
Slide 48: Q1 25 Analyst Meeting Investor Relations Department
Q1 25 Analyst Meeting Investor Relations Department