Bangkok, Thailand-based seafood firm Thai Union concluded 2025 with an eighth consecutive quarter of sales volume growth, but the firm saw its bottom-line earnings pressured by the impact of U.S. import tariffs.
The company reported Q4 2025 sales of THB 35.04 billion (USD 1.09 billion, EUR 926.7 million), which was down 0.1 percent year over year, but the volume of products sold increased by 1.7 percent. When excluding the impact of a strengthening Thai baht against major currencies, the company’s organic sales actually grew by 0.7 percent in the quarter, reflecting sustained global demand for its core seafood and petcare portfolios, according to Thai Union’s Q4 2025 results report.
Despite solid volume momentum, the company’s profitability faced a temporary squeeze, with reported net profit for the quarter falling 16.5 percent to THB 1.01 billion (USD 32.4 million, EUR 27.5 million). On an adjusted basis – stripping out one-time transformation costs – net profit dropped 22.7 percent to THB 1.17 billion (USD 37.5 million, EUR 31.9 million).
This contraction in net income was a direct result of lower gross profit, which declined 2.2 percent to THB 6.41 billion (USD 205.5 million, EUR 174.6 million). This led to a gross profit margin (GPM) of 18.3 percent, down 0.4 percent year over year. The drop in the gross profit occurred because losses in the ambient and value-added segments were larger than the gains made in frozen and petcare. While the latter two segments performed well, they couldn’t fully make up for the impact of U.S. tariffs and higher costs in the ambient business. Meanwhile, the margin erosion highlights a delayed impact in current trade policies, as the company absorbed higher input and duty costs before its newly implemented pricing structures could fully take effect, particularly in the U.S.
Thai Union’s ambient seafood category, which includes its canned tuna business, took the hardest hit from trade headwinds. Sales in the segment decreased 1.8 percent to THB 15.67 billion (USD 502.5 million, EUR 426.8 million). While sales volumes in the category grew by 1.7 percent due to strong demand in Europe and North America, the GPM for the segment dropped 2.3 percent to 18.4 percent.
This drop was driven by higher raw material costs, with tuna prices rising 2.8 percent to USD 1,573 (EUR 1,336) per metric ton (MT) in the period. Additionally, profitability was pressured by the absorption of U.S. tariffs not yet reflected in selling prices, among other factors.
To mitigate tariff-driven inflation, the company rolled out an initial round of price hikes in Q3 2025, complemented by a second round in January 2026. Thai Union management expects these actions to gradually restore margins over the coming quarters.
While the ambient segment struggled, Thai Union’s frozen seafood category performed positively in Q4. Sales in the segment rose 3.4 percent to THB 12.34 billion (USD 395.5 million, EUR 336.1 million), supported by a robust 5.6 percent increase in sales volume. The category achieved an all-time high quarterly GPM of 14.5 percent, driven by price increases and a strong performance from the company’s feed business. Still, the segment saw a rise in selling and administrative expenses due to the use of “delivered duty paid” (DDP) terms, for which Thai Union carried the direct cost of tariffs and logistics.
The petcare segment also remained a high-margin performer for Thai Union. Sales by value grew 1.4 percent to THB 4.69 billion (USD 150.4 million, EUR 127.8 million) on 2.8 percent volume growth, while the segment’s GPM climbed to 26.3 percent, outperforming target ranges for the third straight quarter. This success was bolstered by continued consumer preference for premium products and operational efficiencies gained through the company’s internal transformation programs, Thai Union said.
For the full year of 2025, Thai Union reached a historical milestone by hitting an all-time high annual GPM of 18.9 percent.
However, the company’s 2025 sales contracted 4.1 percent year over year, largely due to a 3 percent negative currency impact. This downward trend extended to gross and net profits, which fell by 1.9 percent and 7.5 percent, respectively.
Regarding its transformation programs, Thai Union said it launched Projects Sonar and Tailwind in 2024 to drive long-term growth. By 2025, these programs significantly boosted company efficiency and petcare momentum, according to the firm. To further enhance portfolio quality, Thai Union exited non-strategic or underperforming units in Papua New Guinea, Pakistan, and Thailand. These divestments, which had limited financial impact, allow for resource reallocation toward higher-growth core businesses, Thai Union said.
“2025 was a year of exceptional external headwinds, from tariffs to currency pressures, yet Thai Union remained resilient and achieved record gross profit margins, earnings per share growth, and constant progress on sales volumes,” Thai Union President and CEO Thiraphong Chansiri said in a release. “Importantly, the transformation we have already put in place allowed us to act as one global organization – moving faster, managing costs with discipline, and protecting margins even as cost pressures intensified. This execution under challenging conditions reinforces our confidence in the strength of our platform and our ability to perform consistently.”
In 2026, Thai Union is targeting a return to top-line growth of 3 percent to 4 percent, aiming to achieve that goal via a “gradual pass-through” of U.S. tariffs to customers and continued volume expansion across all key categories.
The company has budgeted THB 5.5 billion to THB 6 billion (USD 176.3 million to USD 192.3 million, EUR 149.7 million to EUR 163.4 million) in capital expenditure for 2026, with investments earmarked for a new feed plant in Ecuador, an automated warehouse for the petcare division, and an expansion of its packaging business.
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