Pet treats fuel i-Tail’s double-digit growth in first quarter

Thai Union’s i-Tail Corporation reported sales of $163 million (€150M) in the first quarter of fiscal year (FY) 2026. This is up 28.6% year-over-year (YoY).

The performance, driven by stronger demand from key customers in the US and Europe, marks the company’s highest first-quarter result since its 2022 IPO.

Operating profit rose 36% YoY, supported by higher sales volumes and value, as well as disciplined cost management, the company says. Adjusted net profit increased 24.9% to THB 991 million ($27M/€25M).

Gross profit rose to THB 1.26 billion ($34M/€31M), up 23.1% YoY, with a gross profit margin of 24.3%. Premium products, which accounted for 51.5% of total sales, contributed to higher margins.

Pet treats in the lead

Pet treats, which contributed 20.8% of total sales during the quarter, grew 95% YoY, driven by premiumization trends, rising consumer focus on pet wellbeing and the growing popularity of lickable treat formats.

Meanwhile, cat food, despite posting the slowest growth at 4%, accounted for 60% of total sales, while dog food grew 44.6% and contributed 19%.

Regional breakdown

The Americas remained the largest market, contributing 60% of total sales. Performance was driven by demand from global pet food companies and private-label players, with sales rising 22% YoY.

Asia and Oceania followed, accounting for 25% of revenue, driven by demand from brand owners and importers in Japan, Taiwan and Australia. Sales in the region increased 9.4% YoY.

Europe recorded the fastest growth at 49.2% YoY, despite accounting for the smallest revenue share at 15%. Growth was supported by improving order momentum among private-label customers.

Yearly guidance

The company reaffirmed its FY2026 outlook, expecting US dollar sales growth of 9% to 12% and a gross profit margin of 23% to 25%.

Selling, general and administrative (SG&A) expenses to sales are projected at 9% to 10%, reflecting a balanced full-year outlook while monitoring developments related to the Middle East conflict.

“While the impact of the conflict in the Middle East was not material in the first quarter, we are proactively implementing mitigation measures and engaging customers to manage potential knock-on effects,” says CEO Roy Chan.