February 19, 2020
Thai Union Group's net profit at US$167.3 million in FY 2019
Seafood giant Thai Union Group Public PCL has reported a net profit of THB5.218 billion (US$ 167.3 million) for fiscal year 2019, an increase of .5% year-on-year. Gross profit increased 6.4% to THB20.1 billion.
The company continued to improve its operating performance as EBITDA (earnings before interest, taxes, depreciation and amortization) in FY 2019 reached a record high of THB12 billion ($384.83 million)-an increase of 9.2% year-on-year-driven largely by improved profitability and consistently improved contributions from investment and affiliates.
Consolidated sales decreased by 5.3% to THB126.27 billion ($4.05 billion), mainly as a result of the Thai baht's appreciation in the period under review.
Sales volumes grew 1.9% over the previous period. This was chiefly due to frozen and chilled seafood products and related business, which increased 12.8% year-on-year, as well as a 3.2% increase in sales from the PetCare and value-added products business units.
Geographically, sales in North America continued to play an important role in driving revenue for Thai Union, accounting for 41% of total sales, while Europe contributed 28 %. The Thai market grew to 12% of total sales, with Asia-Pacific, the Middle East, Africa and South America contributing 19%.
Focus on profitability
"Thai Union continues to focus on profitability throughout our core operations, new value-enhancing businesses and our existing strategic investments," said Thiraphong Chansiri, CEO of Thai Union Group. "As this set of results closes out the last decade, we can be very proud of the work we have done and the progress we have made throughout the last 10 years. As we enter the new decade, I am confident that we will continue to lead on sustainability and innovation investment.
He also said the company is developing products that respond to the demands of customers and consumers globally through delivering against a focus on Healthy Living and Healthy Oceans.
Saying innovation remains critical to its future growth, Thai Union continues to focus greatly on using the latest technologies to provide the best products and outcomes for consumers. Last year, Thai Union opened the new Global Innovation Centre (GIC) in Bangkok, which employs more than 40 doctoral-degree scientists and more than 120 researchers in the fields of marine biotechnology, engineering, medicine, food science and nutrition from around the world.
Thai Union also established last year SPACE-F, the first global food-tech startup incubator and accelerator in Thailand, in cooperation with the National Innovation Agency and Mahidol University Faculty of Science. In late 2019, SPACE-F held its first exclusive preview event with 23 startups from Germany, India, Norway, Singapore, Thailand and the US, with an aim to drive innovation in the food industry. The first public Demo Day has been planned for March 5.
The company's global brand portfolio includes market-leading international brands including Chicken of the Sea, John West, Petit Navire, Parmentier, Mareblu, King Oscar and Rügen Fisch, and Thai-leading brands SEALECT, Fisho, Qfresh, Monori, Bellotta and Marvo.