May 14, 2012

 

TUF's Q1 earnings up  by 95%

 

 

Thai Union Frozen Products Plc (TUF) has revealed first-quarter results for 2011, to be a net profit of THB1.47 billion (US$47.3 million) -- a 95% rise compared to Q1 of 2011.

 

Quarterly sales in USD terms were US$822 million, up 11% from a year ago. Sales in THB terms also grew by 11% from the same period.

 

Total revenues for the quarter amounted to THB25.8 billion (US$830.2 million), up 12% from the first quarter of 2011.   

 

According to Khun Thiraphong Chansiri, president of TUF, the overall performance for the quarter approached the sales growth target.

 

While normally the first quarter is typically the slowest of the year, this time TUF regardless generated excellent sales and net profit, almost the same as those figures reported in last year's strongest quarter, which was Q3, with sales of US$831 million. Sturdy sales growth was achieved across all product lines this Q1, while the gross profit margin rose to 17.2% versus the 14.8% reached in the first quarter of 2011.

 

A fire incident took place at one of TUF's shrimp-processing plants in Samut Sakhon province, and the firm consequently relocated its workers to its other shrimp-processing facility in Songkhla province. Shrimp production has since resumed to a normal level.

 

The company said it is confident that further profitable growth is well on track. It remains ready to reach its US$5 billion annual sales target by 2015.

 

For the first quarter of 2012, tuna products made up the largest share in the company's product portfolio at 50 %, followed by frozen shrimp (16%), canned pet food (7 %), products for the domestic market (8 %), canned seafood (5%), frozen salmon (5%), shrimp feeds (4%), canned sardines and mackerel (5%) and frozen cephalopods (1%).

 

TUF's primary export markets are the US (36%), EU (30%), Japan (9%) and the domestic market (10%).

 

This year, TUF will roll out more aggressive marketing strategies in its home country, covering branding initiatives that will involve both the corporate brand and the product brand. The goal is to enhance brand recognition among Thai consumers.

 

So far, the company's logo has been modified to convey a more international image to the public and the first commercial advertisement, which shows that TUF is the owner of a host of well-recognised global tuna brands, including Chicken of the Sea, has already aired on local TV channels.