TUF's canned tuna is marketed under its Chicken of the Sea brand. (Photo: Costco)

Thai Union Frozen achieves record profits

THAILAND
Wednesday, February 17, 2010, 02:20 (GMT + 9)

Thai Union Frozen Products (TUF) saw record profits in 2009 due to a 52 per cent-increase in quarterly net profit as sales rose and expanded into new markets, the firm announced on Monday.

Asia's largest canned tuna exporter, TUF makes the Chicken of the Sea brand and sells its products to retail giants like Wal-Mart and Costco. The firm said its fourth quarter October-December net profit was THB 718 million (USD 21.6 million), up from THB 307 million (USD 9.2 million) during the same period in 2008, but below the third quarter's THB 1.02 billion (USD 30.6 million) gains.

The outcome surpassed an average analyst forecast of THB 514.6 million (USD 15.4 million) with revenue of THB 69.7 billion (USD 2.1 million). Full-year net profit was THB 3.34 billion (USD 100.2 million) in 2009, up from THB 2.2 billion (USD 66 million) in 2008, Reuters reports.

To improve inventory and transportation management, the company relocated its American Samoan plant to Georgia, US, in October 2009 and merged the US companies Tri-Union Frozen Foods and Empress International.

TUF President Thiraphong Chansiri, (Photo: Thai Union Group)

TUF President Thiraphong Chansiri said effective management, cost-control measures and outstanding operating results in foreign subsidiaries bred the excellent results.

Last year’s group restructuring helped the firm achieve a new record, while in 2010 it will focus on sustained growth in profit and sales. This year, the company plans to enlarge its net profit by 15-20 per cent and sales by 12 per cent in USD terms.

Also in 2010, TUF will launch a THB 2 billion- (USD 60 million) cold storage facility with a capacity of 40,000 tonnes. It is currently seeking merger-and-acquisition opportunities.

"We have enough cash flow and a lower debt-to-equity ratio at 0.7. We can allocate USD 200 million for investment in the future. That investment budget will come from our own cash and financial institutions," Thiraphong stated.

He expects profit growth of at least 20 per cent for 2010 from high demand given the recovering global economy, continued cost management and the absence of the one-time cost of closing its American Samoa facility last year. Sales in USD are forecast to climb this year by 12 per cent granted sustainable demand for most products due to their affordability and nutritional benefits, Bangkok Post reports.

TUF said it expects its 2010 net profit to exceed last year’s thanks to robust exports and growth in new markets. Company shares rose 17.5 per cent in the October-December quarter, topping a 2.4 per cent gain in the main Thai stock index.

Related articles:

- Thai Union Frozen's Q3 hits new record profits
- Thai Union sets up new subsidiary

By Natalia Real
[email protected]
www.seafood.media

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