Seafood titan Thai Union Group is looking to double its earnings and increase net sales as part of its newly unveiled transformation plan, named Strategy 2030.
The plan lays out a roadmap with the goal of increasing net sales to $7bn by 2030, up from $3.9bn in 2024.
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Additionally, the John West, King Oscar and Chicken of the Sea brands owner aims to double its earnings before interest, taxes, depreciation, and amortisation (EBITDA), targeting $700m to $800m by 2030, compared to approximately $400m in 2024.
The company saaid the new strategy is a pivotal to its “vision of becoming the world’s leading marine health and nutrition company”.
Strategy 2030 is structured around three pillars designed to enhance revenue, gross margins and EBITDA.
The company plans to execute the approach by revitalising its core bsuiness.
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By GlobalDataIt plans to focus on primary categories such as branded ambient, chilled, and feed.
Furthermore, the group said it will target segments such as pet care, frozen foods, culinary products and ingredients, which the company expects “to drive profitable growth through 2030 and beyond.”
Thai Union will also look at new ideas and technologies, including aquaculture ecosystems and alternative proteins as part of this strategy.
To achieve long-term goals in revenue and profitability, the group said it will focus on organisational alignment, talent initiatives, cost focus, streamlining manufacturing networks, strategic procurement, digital capabilities enhancement, innovation leverage,and sustainability commercialisation.
Under its Strategy 2030 plaan, Thai Union has also launched two initiatives: Project Sonar and Project Tailwind.
Under Project Sonar, the group targets “$75m in annual savings” starting in 2026, with 40% of these savings “reinvested to further strengthen” the business.
Meanwhile, Project Tailwind aims to increase annual operating profit in the PetCare category by $50m from 2027 onwards.
Thai Union Group president and CEO Thiraphong Chansiri said: “The world today faces unprecedented shifts, from geo-political 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 grounded by our purpose of healthy living, healthy oceans, we’re setting our sights on achieving $7bn revenue and doubling EBITDA by 2030.”
In Q3 2024, Thai Union posted sales of Bt34.84bn ($1.01bn), reflecting a 2.7% year-on-year increase from Bt33.91bn ($984m) in Q3 2023.
Sales volume rose by 10.4% YoY, spurred by demand recovery in ambient, pet care, and value-added categories.
Gross profit reached Bt6.79bn, a 9% increase from Bt6.23bn in the same period last year, with gross profit margin hitting a record 19.5%, aided by regional demand recovery and lower raw material costs.
Net profit rose to Bt1.40bn from Bt1.34bn in Q3 2023, up 4.4% YoY.
For the quarter ended 30 September 2024, EBITDA rose to Bt3.65bn, reflecting an 8.4% increase from Bt3.37bn in Q3 2023.
Earlier this year, Thai Union Group said it plans to “exit” its investment in US restaurant business Red Lobster.
Thai Union first invested in Red Lobster in 2016, paying $575m for a minority stake.
