Thai Union Feedmill PCL

Mr. Thiraphong Chansiri, Chief Executive Officer of Thai Union Group Public Company Limited, or TU, said that the continued weakening of the baht is a clear positive factor, helping to support revenue from exports or overseas business, which accounts for roughly 88 to 89% of total revenue. The baht has weakened more than the company had previously estimated, further enhancing the competitiveness of the export sector in global markets. For its business outlook in the second half of 2026, TU expects continued growth on the back of an improved overall order picture, and it is maintaining its target of revenue growth of about 4 to 6% from the previous year, after generating revenue of approximately 65.8 billion baht in the first half of this year. As for the tariff discussions between the Thai and US governments, TU initially believes that the structure of import tariff rates in its main market, the United States, is unlikely to increase. On expansion strategy, the company continues to focus on overseas investment through its pet care business, via i-Tail Corporation Public Company Limited, and its economic animal food, or pet food, business, via Thai Union Feedmill Public Company Limited, which will expand investment in a project to build a shrimp feed production plant in Ecuador. Both groups are seen as drivers of new growth, or a new S-Curve, over the long term. Meanwhile, analysts at Land and Houses Securities Public Company Limited recommend buying TU with a target price of 14.75 baht, because the business has passed the bottom of its restructuring. The transitional expense burden that had pressured its EBIT margin down to 4.6% in 2025 has ended, and a clear recovery is expected in 2027.

Thai Union Feedmill (TFM) is advancing its aquaculture business investment in Ecuador by establishing a subsidiary, Thai Union Feedmill Ecuador S.A.S., which was completed on September 4, 2026, with an initial registered capital of $27 million. TFM holds 85.19% of the shares, alongside AVANTI FEED LTD. with 11.11% and PACIFIC AQUA SOLUTION PACSOL S.A.S. with 3.70%. Subsequently, the capital was increased to $30 million, resulting in TFM's shareholding proportion decreasing to 76.67%, while AVANTI FEED LTD. holds 10%, FEVALRI S.A. holds 10%, and PACIFIC AQUA SOLUTION PACSOL S.A.S. holds 3.33%. The company stated that this shareholding restructuring aims to strengthen capital readiness and liquidity, support future operations and business expansion, and build strong business alliances in Ecuador.

Thai Union Feedmill Public Company Limited, or TFM, has received halal certification from the Central Islamic Council of Thailand, covering 48 SKUs of shrimp and fish feed products. This certification elevates production standards in quality, safety, and traceability, strengthening competitiveness and opening opportunities to expand into Middle Eastern and ASEAN markets, particularly Malaysia and Bangladesh, where there is demand for products aligned with the farm-to-table halal concept.

Thai Union Group, or TU, will receive interim dividends from two subsidiaries totaling over 1.4 billion baht. ITC is paying a dividend of 0.55 baht per share, with an XD date of August 11 and payment on August 26. TFM is paying 0.18 baht per share, with an XD date of August 13 and payment also on August 26. Based on TU's shareholding of 79.30 percent in ITC and 51.00 percent in TFM, it will receive approximately 1.308 billion baht from ITC and about 91 million baht from TFM, totaling over 1.4 billion baht. Meanwhile, TU's share price rose 4.27 percent in July, while ITC's share price increased 8.70 percent.

Thai Union Feedmill, or TFM, reported a second-quarter 2026 net profit of 161 million baht, up 9% from the previous quarter, with sales revenue of 1.455 billion baht, an increase of 9.8%, supported by the aquaculture season. The shrimp feed business, its main revenue driver, grew 2.3% domestically and 62% in exports, despite higher fishmeal costs. For the first half, sales revenue reached 2.78 billion baht and net profit stood at 308 million baht. The board approved an interim dividend of 0.18 baht per share, payable on 26 August 2026, while pressing ahead in the second half to improve efficiency and expand the customer base both at home and abroad.