March 4, 2014

The year 2013 was a tough one for Thailand's export-driven seafood processors attributed to early mortality syndrome (EMS) in shrimp, volatile tuna prices and equally volatile exchange rates between the Thai baht and the US dollar.

Thai Union Frozen Products and Charoen Pokphand Foods unveil plummeting profits for the year, while US$153 million-revenue Seafresh took a turn into the red. Results from other Thai processors listed on the country's stock exchange also show a similarly tough picture.

Asian Seafoods Coldstorage cited "highly volatile raw material prices of shrimp and tuna" and a shortage of shrimp due to EMS has pushed its annual gross profit drop by THB86.2 million (US$2.7 million) in 2013.

Its net result swung into the red with losses of THB198.7 million (US$6.1 million), down from a profit of THB9.8 million (US$302,000) in 2012. The company also blamed the drop on losses on exchange rates from forward contracts amounting to THB44.4 million (US$1.4 million), compared to gains of THB133.4 million (US$4.1 million) in 2012.

Tropical Canning also swung into the red with losses of THB24.9 million (US$767,000) in 2013, compared to profits of THB85.6 million (US$2.6 million) in 2012. The company said the "global economic downturn, especially in the tuna market" drove revenues down 17% to THB4.367 billion (US$134 million), down from THB5.269 billion (US$ 162 million) in 2012.

Oishi Group, for whom 50% of the business is food related, also did not escape the trend. Profit dropped for 30% to THB456 million (US$14 million), down from THB654 million (US$20 million).

The group's food business did see a 12.3% growth in sales revenue, mainly from an increased number of restaurant outlets, which helped push overall sales up 4.9% to THB12.2 billion (US$374 million), from THB11.6 billion (US$357 million) the previous year. Intense competition and higher promotional campaigns meant selling expenses increased from 11.8% of total sales to 18.8%, said the company.

One smaller company, however, defied the above picture. While Trang Seafood Products saw its sales drop in 2013, its profit was up 26%, from THB30.2 million (US$930,000) in 2012 to THB38.66 million (US$1.2 million) last year. This was attributable to a "number of contributing factors", such as the Thai baht strengthening against the yen, said the company.