Tuna cans. (Photo Credit: Thai Union Frozen)

TUF achieves strong net profit growth in Q2

Canned tuna sector giant Thai Union Frozen Products Public Company Limited (TUF) reported net profit growth in the second quarter of 2014 and attributed it to the stronger sales of branded tuna, frozen shrimp and value added products.

TUF's net profit increased by 323.9 per cent, amounting to THB 1,522 million (USD 47.5 million) and total sales grew by 7.6 per cent year on year, to THB 30,258 million (USD 944.2 million) due to a weaker local currency.

The firm stressed particularly the rise in frozen shrimp sales to US and the high season of its operations with the European Union as the main factors for sales growth.

Meanwhile, it stated that sales to the Japanese market experienced a reduction year on year due to a weaker demand.

“After putting emphasis on brand investment since the beginning of 2014, we gained more sales contribution from branded business,” pointed out TUF Secretary Paralee Sukhatungka.

In addition, gross profit margin improved to 16.1 per cent in 2Q from 14.9 per cent in 1Q and 12.4 per cent in 2Q. This improvement year on year came mainly from a good performance of branded tuna business and higher gross profit margin of frozen shrimp business.

Finance cost increased by 57.3 per cent year on year due to higher interest expense from baht debenture issuance in the first quarter to refinance the portion of long term debts that will come due later this year and one-time additional accrued interest expense booked in the second quarter.

As to first-half operating results, TUF informed net profit increased by 139.1 per cent, changing from THB 1,033 million (USD 32.2 million) a year ago to THB 2,471 million (USD 77 million) this year.

First-half sales performance of 2014 was recorded at THB 58,206.6 million (USD 1,816.4 million), which represented 10.7 per cent up from THB 52,560.3 million (USD 1,640.2 million) achieved in the corresponding period in 2013.

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