Thai Union reports higher Q2 net profit
SET-listed Thai Union Group Plc (TU), a global seafood conglomerate, has reported higher net profit in the second quarter, attributed to falling material prices and higher sales revenue from frozen seafood, as well as pet care and value-added products.
Net profit was 1.5 billion baht for the second quarter, up 10.6% year-on-year from 1.4 billion logged in last year’s corresponding period.
Frozen and chilled seafood sales rose by 3.6% year-on-year to 13.4 billion baht, driven mainly by volume growth that outpaced a decline in raw material prices.
Pet care and valued-added sales logged 4.8 billion baht, up 6.7% year-onyear, attributed to higher sales volume and a significant growth in a subsidiary’s can manufacturing.
Ambient seafood sales, however, fell by 14.3% year-on-year to 14 billion baht, partly attributed to depreciating European currencies. Gross profit for this segment improved 9.1% year-on-year because of falling tuna prices, highervalue product sales and greater efficiency derived from implementing automation.
Consolidated sales declined by 4.6% year-on-year to 32.2 billion baht in the second quarter because of the baht appreciation, the depreciation of European currencies and lower raw material prices.
Organic sales volumes continued to grow, particularly in the frozen seafood and pet care businesses, supported by Thai Union’s strategy to pursue more value-added products, said the company in its statement.
“Profitability remains a key focus for us at Thai Union, and the overall performance in the second quarter was pleasing, particularly in a challenging operating environment,” said president
and chief executive Thiraphong Chansiri.
“As we look ahead, Thai Union will continue to see new innovative products developed and launched to market, which will provide us with new revenue streams as we work to build a business with sustainable growth.”
Gross profit was 5.4 billion baht in the second quarter, while gross profit margin improved to 16.7% from 14% in last year’s corresponding period.
In the first half of 2019, North America contributed 39% of total sales, followed by Europe at 29%, the domestic market at 12% and other markets 19%.
Thai Union’s subsidiary Chicken of the Sea reached a settlement with the majority of plaintiffs in an ongoing antitrust litigation in the US in the second quarter, costing in an additional 1.4 billion baht after tax. Excluding the one-time accrual, the company’s net profit stood at 1.5 billion baht.
TU shares closed yesterday on the SET at 18.30 baht, down 60 satang, in trade worth 837 million baht.
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Thai Union will continue to see new innovative products developed and launched to market. THIRAPHONG CHANSIRI President and chief executive, Thai Union