TUF net profit surge 27.3% in Q1

Thai Union Frozen Products has announced an in-line 2010 first quarter net profit of THB831.22 billion (EPS of THB0.94) 27.3% higher year-on-year.

In US dollar terms, sales were flat year-on-year at US$498 million, while sales in baht fell by 7.6% year-on-year and 5.1% quarter-on-quarter to THB16.329 billion. However, sales volume grew by 10.6% year-on-year to 144,642 tonnes driven by higher demand for shrimp, frozen cephalopod/salmon, shrimp feed and higher domestic sales. The gross margin of 13.7% was in line with target and up from 12.1% in 1Q09.

2010F revenue target is maintained based on gross margin assumption of 15.2% and an SG&A expenses to sales ratio target of 8%.

Meanwhile, net profit forecast of THB3.87 billion (EPS of THB4.38) implies a growth rate of 16% year-on-year. This is in line with management's guidance of earnings growth this year in the range of 15-20% year-on-year.