Thai Union's sales for the fourth quarter increased by 4.8% sequentially, reaching THB 35.5 billion, driven by a robust recovery in frozen products and pet care.

Thai Union Group PCL achieved a record-breaking sales performance in the final quarter of 2023, witnessing a 4.8% increase from the previous quarter, reaching THB 35.5 billion. This surge was primarily fueled by significant growth in the Frozen and PetCare segments. Despite facing a 12.5% decline in annual sales, totaling THB 136.2 billion, due to a high comparison base in 2022 and logistics normalization, the company's normalized net profit for the year decreased by 37% to THB 4.5 billion. This decline includes a substantial non-cash impairment charge of THB 18.4 billion (USD 527 million) related to its decision to exit its minority investment in Red Lobster during the fourth quarter. However, bondholders have granted a one-time waiver allowing this impairment to be excluded from the 2023 net income covenant calculation. Thai Union's financial health remains robust, as evidenced by TRIS Rating's reaffirmation of its A+ rating. The company saw an 8% increase in frozen and chilled seafood sales in the fourth quarter, reaching THB 12.5 billion, with a record quarterly gross profit margin of 14.4%. This improvement was attributed to strategic adjustments in the U.S. and enhanced inventory management. PetCare sales also rose by 22.5% quarter-on-quarter, driven by a resurgence in customer restocking and a strategic emphasis on wet pet food and treats. Additionally, Thai Union reported a positive cash flow of THB 2.8 billion in the fourth quarter, largely due to strong EBITDA and effective net working capital management. Thiraphong Chansiri, CEO of Thai Union Group, acknowledged the significant challenges faced in 2023, including inflationary pressures and a cost-of-living crisis affecting consumer spending. Despite these obstacles, the company's resilience and the successful execution of its profit protection plan contributed to an improved fourth-quarter performance. For the full year, ambient seafood constituted 47% of total revenues, followed by frozen and chilled seafood at 35%, PetCare at 11%, and value-added and other businesses at 7%. Geographically, sales were predominantly in the U.S. and Canada (41%), Europe (30%), Thailand (11%), and other regions (18%). The company announced a second half-year dividend of THB 0.24 per share, resulting in a total annual dividend of THB 0.54 per share. Thai Union's commitment to sustainability was recognized with its 10th consecutive listing on the Dow Jones Sustainability Indices in the fourth quarter of 2023 and its top ranking on the Seafood Stewardship Index (SSI) for the third time. The company also initiated the second phase of its Blue Finance agenda with a THB 11,485 million Sustainability-Linked financing package, aiming to increase sustainability-linked finance to 75% of its long-term financing by 2025. Looking ahead, Thai Union has unveiled its Strategy 2030, focusing on "Healthy Living, Healthy Oceans" to foster a sustainable and healthier future. This strategy emphasizes the company's core businesses of Ambient Seafood, Frozen, and PetCare to enhance profitability and shareholder value. CEO Chansiri expressed confidence in overcoming external challenges in 2024 and driving long-term growth through this strategic focus. Thai Union Group PCL, a global leader in the seafood industry for 47 years, is renowned for its commitment to high-quality, innovative seafood products and sustainability. With a diverse brand portfolio and a global workforce of over 44,000, the company continues to lead in sustainable seafood production and innovation.