i-Tail pet business defies weaker Thai Union’s group sales

Pet care was a great performer for Thai Union Group, the global seafood business that owns Bellotta, Marvo, Calico Bay and ChangeTer pet brands.

The Thai firm reports a 10.3% drop in global sales across its portfolio in the first quarter of 2025. The ฿29.8 billion ($897M/€808M) in group sales resulted from a 6.9% year-over-year (YoY) decline in organic sales growth.

However, under the Bangkok-headquartered i-Tail Corporation (ITC), its pet care operations reported net sales of ฿4.2 billion ($126.5M/€113.9M) from January to March 2025, a 5.5% YoY increase.

The portfolio also exceeded the gross profit margin by more than 24% compared to the group average of just short of 19% (which was a record for the quarter).

“This year, ITC continues to focus on expanding our customer base in key markets, with a strategic emphasis on the development of wet cat food products, while also diversifying our portfolio of dog food and pet treats,” explains Pichitchai Wongpiya, ITC’s CEO.

Private label and export

The ITC business is actively expanding its presence among private-label customers and importers across multiple regions.

The company has recently secured new orders in Germany, Italy and Turkey. Product deliveries are expected to start in the second half of 2025.

“This reflects our ability to respond to the evolving needs of consumers who demand high-quality and value-driven products. It is also a significant opportunity for ITC to differentiate and showcase our expertise and further expand our market share,” adds Wongpiya.

America accounts for 60% of ITC’s total revenue, followed by Asia and Oceania (28%) and Europe (12%). Cat food accounted for the largest share at 71%, followed by dog food (16%) and treats (13%).

Premium cornerstone

According to the company’s CEO, the premium product segment remains a “cornerstone” of its long-term strategy.

“The premium mix remained steady at 47%-50%, demonstrating ITC’s ability to effectively manage and balance our product portfolio, while reinforcing a strong position in the premium market as one of the key drivers of business performance and long-term growth,” he says.

i-Tail is confident in its forward growth and is investing in productivity, including the development of an Automated Storage and Retrieval System (ASRS) warehouse at its Songkhla factory and the implementation of automated production technology for pouch packaging of pet food at its Samut Sakhon factory, which is 45 km southwest of Bangkok.

Group overview

Overall, Thai Union Group’s net profit was ฿1.3 billion ($39.2M/€35.2M), up 8.9% YoY, and reported net profit was ฿1 billion ($30M/€27.1M).

The company has been working on a roadmap to boost profits and transform the Group into the world’s leading marine health and nutrition company. It has recently secured financing of $150 million (€135M) through a Blue Loan from the Asian Development Bank to invest in sustainable shrimp procurement.

“Despite a challenging macro backdrop, we continued to strengthen our core businesses, invest for long-term growth and deliver healthy profitability,” says Thiraphong Chansiri, CEO of Thai Union Group.

“When we embarked on our transformation journey, we knew increasing our agility, efficiency and speed was essential. In today’s world, that is never more true. We have laid solid foundations, which are now serving us well and delivering value which will only increase further in the future.”

Thai Union has anticipated the US tariff changes and proactively built up inventory across all categories in the US with 4-6 months of sales in finished goods currently in the market, mitigating short-term risk.

Thailand’s exporters have faced a blacklisting by US authorities relating to child labor concerns, although Thai Union operates 13 facilities globally including in the US.