Thai Union Group disclosed that the UK government's temporary exemption of import tariffs on canned tuna products, from the original 24% until December 2028, is a positive factor for the business because it increases marketing opportunities and supports higher sales in Europe, which previously accounted for about 30% of the company's total sales. Regarding the US Section 301 tariff measure on goods imported from Thailand at a rate of 12.5%, effective from 24 July 2026, the company has planned ahead by continuously adjusting its management strategy, such as considering shifting some product lines to be manufactured in Thailand to enhance competitiveness. In the long term, the company is also moving forward to expand its revenue base from businesses with high gross margins, such as pet food and value-added products, to reach approximately 25-30% of total sales by 2030, up from 20.7%, alongside the Internal Transformation programme to adopt automation to reduce labour costs and production losses. As for the baht, which has been moving in a weaker range and is at a better level than the company's earlier full-year 2026 average estimate of around 32.5 baht per US dollar, this is a positive factor and helps support 2026 revenue even further, in addition to an expanding customer base and continuous new product launches. The company therefore maintains its revenue growth target of 4-6% this year from the previous year. On the analyst side, Maybank Securities Thailand recommends buying TU with a target price of 14.50 baht, viewing the UK's reduction of canned tuna import tariffs from a maximum of 24% to 0% until December 2028, together with possible additional free trade agreements between the Thai government and Europe in the future, as further growth opportunities for TU as Thailand's largest exporter of tuna and shrimp, and expects TU to offer a dividend yield as high as 6%.
Thai Union Group PCLUK temporary tariff exemption on canned tuna boosts European sales and marketing opportunities.
