TUF profits this last Q1 hinged on value-added products. (Photo: TUF)

Thai Union announces 27 pct jump in Q1

THAILAND
Wednesday, May 05, 2010, 00:40 (GMT + 9)

Chief Thai producer and exporter of canned and frozen seafood Thai Union Frozen Products (TUF) announced a record Q1 with a 27 per cent boost in net profits. The company consistently maintained a high margin by focusing on value-added products and said it is working toward sustainable growth through its strong management and operational capabilities.

TUF President Thiraphong Chansiri affirmed the firm’s net profit reached THB 831 million (USD 25.5 million) against THB 653 million (USD 20.1 million) last year. Earnings per share also rose to THB 0.94 (USD 0.03).

Sales revenue in USD was USD 498 million against 2009’s USD 499 million. Sales revenue fell by 8 per cent from THB 17.666 billion in Q1 last year to THB 16.329 billion this year.

Total revenue dropped by 6 per cent from THB 17.889 billion (USD 549.7 million) in Q1 2009 to THB 16.740 billion (USD 514.4 million) last quarter.

Thiraphong said the remarkable growth in net profit resulted from efficient operations and management, plus the ability of overseas subsidiary companies Tri-Union Seafoods and Empress to spawn higher profits. The restructuring of the management and operation structure, like the relocation of manufacturing from the American Samoa facility to a new plant in Georgia, US, has begun paying off in flexibility and efficiency.

Sales revenue in USD did not rise above 2009 due to an 8 per cent drop in raw material prices, but the figure was similar. Total sales revenue jumped by 9 per cent in USD, or 1 per cent in THB.

Thiraphong stated that net sales in THB fell by 8 per cent in this quarter compared to the same quarter last year, largely because the THB had escalated by 7.6 per cent between these periods. Despite some adverse factors, TUF maintained a gross margin, operating margin and net margin on a level akin to 2009.

 “Sales revenue for the Q1/2010 might not have grown, but total sales volume grew 11 per cent over the same period last year, for example, frozen shrimp up 20 per cent while sales volume of frozen cephalopod / salmon products rose 15 per cent,” Thiraphong added.

In Q1 2010, tuna products still constituted TUF’s largest share at 42 per cent, followed by frozen shrimp (21 per cent), canned pet food (9 per cent) and canned seafood (8 per cent) in the top spots. TUF’s main export markets are the US (49 per cent), Japan (11 per cent) and the European Union (EU) (11 per cent), while the domestic market makes up 12 per cent of sales.

Thiraphong presented a summary of the year’s market strategy and said TUF will keep expanding in existing and new markets. Value-added products would be an area of expansion for established markets, while TUF would concentrate on frozen products for new markets such as Russia.

Related article:

- Thai Union Frozen achieves record profits

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

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