Seafood powerhouse Thai Union Group is set to significantly enhance its earnings and boost net sales with the launch of its new initiative, Strategy 2030.
This strategic plan outlines a blueprint aimed at increasing net sales to $7 billion by 2030, up from $3.9 billion anticipated in 2024. Furthermore, the owner of renowned brands such as John West, King Oscar, and Chicken of the Sea aims to double its earnings before interest, taxes, depreciation, and amortization (EBITDA), projecting a target of $700 million to $800 million by 2030, in contrast to the approximate $400 million expected in 2024.
The company indicated that this new strategy is crucial to its “vision of becoming the world’s leading marine health and nutrition company.”
Structured around three key pillars, Strategy 2030 emphasizes the enhancement of revenue, gross margins, and EBITDA, while revitalizing the core business approach.
Thai Union plans to concentrate on primary categories, including branded ambient, chilled products, and feed, while also exploring market segments such as pet care, frozen foods, culinary products, and ingredients. The company believes that these segments will fuel profitable growth through 2030 and beyond.
In addition to pursuing traditional market avenues, Thai Union intends to explore innovative concepts and technologies, such as integrating aquaculture ecosystems and alternative proteins into their offerings.
To ensure alignment with its long-term revenue and profitability goals, the group will implement several initiatives focusing on organizational alignment, talent development, cost management, streamlining manufacturing processes, strategic procurement, enhancing digital capabilities, leveraging innovation, and commercializing sustainability efforts.
Under the Strategy 2030 framework, Thai Union has already launched two key initiatives: Project Sonar and Project Tailwind. Project Sonar aims to generate “$75 million in annual savings” starting in 2026, with 40% of the savings earmarked for reinvestment to bolster the business. Meanwhile, Project Tailwind seeks to boost annual operating profit in the PetCare category by $50 million beginning in 2027.
Thai Union Group’s president and CEO, Thiraphong Chansiri, commented, “The world today faces unprecedented shifts, from geopolitical pressures and rising inflation to rapidly evolving consumer demands. In light of these challenges, Thai Union is positioning itself to capitalize on new opportunities and drive significant growth.”
He added, “With a bold vision to become the world’s leading marine health and nutrition company grounded in our purpose of healthy living and healthy oceans, we’re aiming to achieve $7 billion in revenue and double our EBITDA by 2030.”
In its third quarter of 2024, the company reported sales of Bt34.84 billion ($1.01 billion), marking a 2.7% year-over-year increase from Bt33.91 billion ($984 million) in Q3 2023. Sales volume surged by 10.4% year-over-year, spurred by a recovery in ambient products, pet care, and value-added categories.
Furthermore, Thai Union recorded a gross profit of Bt6.79 billion, up 9% from Bt6.23 billion during the same period last year, with a record gross profit margin of 19.5%, supported by regional demand recovery and decreased raw material costs. Correspondingly, net profits rose to Bt1.40 billion from Bt1.34 billion in Q3 2023, representing a 4.4% increase year-over-year.
For the quarter ending September 30, 2024, EBITDA climbed to Bt3.65 billion, reflecting an 8.4% rise from Bt3.37 billion in Q3 2023.
Earlier this year, Thai Union Group announced plans to “exit” its investment in the U.S. restaurant chain Red Lobster. Initially investing in Red Lobster in 2016, Thai Union acquired a minority stake for $575 million.
In conclusion, with its focus on the food and beverage industry trends and evolving consumer demands, Thai Union Group aims to solidify its position as a leader in the food and drink business while driving growth and expansion in the food and drink consumer trends for years to come.
