Thai Union currently controls famous international canned brands. (Photo: Thai Union)

Thai Union records lower sales in third market but higher net earnings

Thai Union Group PCL reported a 1.9 per cent year-on-year decline in third quarter sales, a result that is mainly explained by the impact of the Thai baht appreciation and declining raw material prices.

The Group's net profit during this period reached THB 34,174 million (USD 1,036 million) and the net benefit it reported to the Stock Exchange of Thailand was THB 1,310 million (USD 39.7 million).

Photo: ThaI Union

However, Thai Union points out that the third quarter normalized net profits from operations is adjusted for impairments of Edinburgh Salmon Company (ESCo), which amounted to THB 420 million, bringing the adjusted net profit to THB 1.7 billion (USD 51.5 million). The net profit margin improved to 5.1 per cent from 4.0 per cent in the second quarter.

Gross profit improved significantly from prior quarter to THB 5,378 million while the gross profit margin was 15.7 per cent compared to 14 per cent in the second quarter, marking the best gross profit performance since 2016.

Photo: ThaI Union

The firm highlighted that non-processed tuna stable prices contributed to the improvement of the net margin and that the tuna business is the main engine for the recovery.

Inventories of higher-priced raw materials, particularly in the shrimp business, along with the Thai baht appreciation, contributed to ongoing market volatility.

Photo: ThaI Union

The Group informed that its ambient seafood sales in the third quarter were THB 16,806 million, up 0.4 per cent year-on-year. Sales contribution from the frozen and chilled seafood business fell 8.1 per cent year-on-year, to THB 13,037 million, and PetCare and value-added product sales fell 5.4 per cent to THB 4,331 million over the same period last year due partly to Thai baht appreciation against the US dollar at 1.2 per cent year-on-year.

In the first three quarters of 2018, North America contributed 39 per cent of total sales, followed by Europe at 31 per cent, the Thai domestic market at 10 per cent, and other markets at 20 percent.

"Thai Union will continue to expand its business portfolio through business diversification while continuing aggressive development of product innovation," pointed out Thiraphong Chansiri, Thai Union CEO.

Thai Union has recently introduced Thammachart Seafood's premium seafood store, The Lobster Lab, at Alibaba's retail chain Hema in Shanghai, China. This take-out and sit-down restaurant concept serving live lobsters from North America is meeting the growing Chinese consumer's demand for tasty and nutritious seafood.
 

(THB 1 = USD 0.03032)

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Address:	72/1 Moo 7, Sethakit 1 Road, Tambon Tarsrai
City:	Amphur Muangsamutsakorn
State/ZIP:	Samutsakorn (74000)
Country:	Thailand
Phone:	+66 2 298 0024
Fax:	+66 2 298 0548
E-Mail:	[email protected]
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