Thai Union Targets $7 Billion Revenue and Doubling of Earnings by 2030
Thai Union Group, one of the world’s largest seafood producers, is setting ambitious goals for the future with its newly launched transformation plan, Strategy 2030. The company, which owns popular brands such as John West, King Oscar, and Chicken of the Sea, aims to nearly double its net sales to $7 billion by 2030, a significant leap from its expected $3.9 billion in 2024. The company also plans to double its earnings before interest, taxes, depreciation, and amortization (EBITDA), setting a target range of $700 million to $800 million by the end of the decade, compared to an estimated $400 million in 2024.
This bold move comes as Thai Union lays out a strategic vision to not only expand its revenue but also secure its position as a global leader in marine health and nutrition. The company sees Strategy 2030 as a pivotal part of its long-term growth and sustainability goals, aiming to harness the full potential of its market reach and innovation.
Key Pillars of Strategy 2030
The foundation of Thai Union’s Strategy 2030 revolves around three key pillars designed to boost revenue, improve gross margins, and ultimately increase EBITDA. These pillars focus on revitalizing the company’s core business operations, with particular emphasis on expanding its reach in high-growth categories, maximizing operational efficiency, and capitalizing on emerging technologies.
1. Revitalization of Core Business
At the heart of Thai Union’s plan is the revitalization of its core business, which includes branded ambient, chilled, and feed categories. These segments have long been the company’s bread and butter, and by focusing on strengthening their market position, Thai Union aims to continue driving stable growth. Additionally, the company plans to extend its reach into other profitable and emerging categories that have significant potential for growth.
2. Expanding into High-Growth Segments
Beyond its traditional offerings, Thai Union is looking to capitalize on growing markets like pet care, frozen foods, culinary products, and ingredients. The company believes these sectors will play a crucial role in driving profitable growth through 2030 and beyond. With pet care seeing increasing demand due to rising pet ownership globally, and consumers seeking more sustainable and convenient food options, Thai Union is well-positioned to capture these trends.
3. Leveraging Technology and Innovation
A crucial component of Thai Union’s Strategy 2030 is the exploration of new ideas and technologies. The company plans to invest in aquaculture ecosystems and explore alternative proteins, which are expected to play a significant role in the future of the global food system. These innovations are in line with the company’s goal of advancing marine health and nutrition while addressing sustainability challenges.
Project Sonar and Project Tailwind
To further support its strategic goals, Thai Union has launched two major initiatives: Project Sonar and Project Tailwind.
Project Sonar is designed to drive significant cost savings and efficiency improvements. The company is targeting $75 million in annual savings by 2026, with 40% of these savings earmarked to be reinvested into the business to strengthen operations further. This project aims to optimize processes and improve profitability across all business areas.
Meanwhile, Project Tailwind is focused on the pet care segment, where Thai Union plans to increase annual operating profit by $50 million starting in 2027. With the growing popularity of pet care products, particularly in mature markets such as North America and Europe, this initiative will allow Thai Union to tap into the expanding pet food market and benefit from increased consumer spending in this category.
CEO’s Vision for the Future
Thiraphong Chansiri, the President and CEO of Thai Union, highlighted the company’s resilience and determination to meet the challenges of a rapidly changing world. In a statement, he said, “The world today faces unprecedented shifts, from geopolitical pressures and rising inflation to rapidly evolving consumer demands. In the face of these challenges, Thai Union is seizing the opportunity to turn the tides and achieve greater success.”
With a bold vision to become the world’s leading marine health and nutrition company, Thai Union is setting its sights on reaching $7 billion in revenue and doubling its EBITDA by 2030. The company’s focus on sustainability, innovation, and strategic growth places it on a path to becoming a major player in the global food industry.
Solid Performance in Q3 2024
Thai Union has already demonstrated solid performance in 2024, reflecting the early success of its strategy. In Q3 2024, the company posted sales of Bt34.84 billion ($1.01 billion), a 2.7% year-on-year increase from the previous quarter. This growth was driven by a 10.4% increase in sales volume, particularly in categories such as ambient, pet care, and value-added products, which saw a strong recovery in demand.
Gross profit for Q3 2024 rose by 9%, reaching Bt6.79 billion, with a record gross profit margin of 19.5%. This increase was attributed to regional demand recovery and lower raw material costs. Additionally, Thai Union saw an uptick in its net profit, which rose by 4.4% YoY to Bt1.40 billion.
EBITDA for the third quarter also saw a healthy increase of 8.4%, reaching Bt3.65 billion compared to Bt3.37 billion in the same period in 2023. These results show the company’s ability to manage costs effectively and respond to shifting market dynamics, while continuing to innovate and grow.
Looking Ahead
As Thai Union continues its transformation journey under Strategy 2030, the company is well-positioned to meet its ambitious targets for revenue and profitability. By focusing on core business revitalization, expanding into high-growth sectors, and leveraging cutting-edge technologies, Thai Union is positioning itself for long-term success. With its commitment to sustainability and innovation, the company is set to become a global leader in marine health and nutrition, achieving its $7 billion revenue goal and doubling EBITDA by the end of the decade.
In conclusion, Thai Union’s Strategy 2030 marks an exciting new chapter for the company, one that will see it evolve and grow in response to emerging opportunities and global challenges. The company’s focus on strategic growth, operational efficiency, and technological innovation will play a key role in driving its success, positioning it as a leader in the seafood industry for years to come.