Mr. Peerasak Boonmechote, Chief Executive Officer of Thai Union Feedmill Public Company Limited (SET: TFM), disclosed that for the first quarter of 2026, the company reported a net profit of THB 148 million, representing an increase of 11.9% compared to the same period last year, which recorded a net profit of THB 132 million.
This performance was in line with an increase in sales revenue. However, the net profit decreased by 20% from the previous quarter, when the figure stood at THB 184 million, due to normal seasonal factors, as the first quarter typically constitutes the low season for the industry.
In 1Q26, TFM reported sales revenue of THB 1,325 million, a 7.6% increase from the THB 1,231.3 million recorded for the same period last year. However, sales revenue declined by 18.9% compared to the previous quarter, which saw total sales revenue of THB 1,634 million.
The main driver was strong growth in shrimp feed sales, which rose by 13.1% to reach THB 880 million, representing 66% of total sales. This was attributed to higher sales volumes and a continued expansion of market share domestically. Meanwhile, fish feed sales remained stable, while sales of terrestrial animal feed declined by 17.4%.
The company’s gross profit for the first quarter of 2026 was THB 265 million, a decrease of 0.7% from THB 267 million in 1Q25, and a decrease of 27.4% from THB 365 million in the previous quarter. This result was due to a mix of positive and negative factors, including a more favorable product mix with a focus on high-margin products and increased sales volumes, offset by higher raw material costs.
As a result, the gross profit margin was 20%, down by 1.7 percentage points from 21.7% in the same quarter last year, and down by 2.3 percentage points from 22.3% in the previous quarter.
Selling, general and administrative expenses (SG&A) totaled THB 117 million in the first quarter of 2026, a decrease of 3.8% from THB 121 million in the same period last year, and a decrease of 23% from THB 151 million in the previous quarter. The SG&A-to-sales ratio improved to 8.8% from 9.8% in the first quarter of 2025, reflecting effective cost control.
Furthermore, the allowance for doubtful accounts saw a net reversal of THB 1 million, compared to an expense of THB 7 million in the same quarter last year, due to successful debt collection and management efforts in both Thailand and Indonesia.
For its 2026 business plan, TFM targets sales growth of 8–10% from the previous year, in which sales were approximately THB 6,000 million. Key growth drivers will be the continued expansion of the shrimp feed and fish feed businesses in Thailand, with the aim of maintaining the gross profit margin at a solid level of 18–20%, supported by consistently strong production efficiency, high-quality product mix, effective product cost management, and efficient raw material cost management.
The company also aims to keep the SG&A-to-sales ratio at 8–10% by implementing additional cost-reduction measures to offset necessary increases in sales and marketing expenses needed to support future growth.
The investment budget for 2026 is set at around THB 600 million, mainly to be allocated to the construction of a new factory in Ecuador, as well as to support business development, operational improvements, and various strategic initiatives.
For long-term growth, the company continues its overseas business expansion, including fostering collaborations in Bangladesh to elevate the aquaculture industry and investing in Ecuador to capture growth in the global market.
Concurrently, TFM is advancing the “low-carbon aquaculture” initiative under the Thai Union Synergy 2026 Project, aiming to enhance efficiency throughout the production chain and increase the competitiveness of Thai farmers to meet the demands of the premium market segment.
