May 24, 2019
Thai Union Group net profit up 46.5% in 1st quarter
Seafood giant Thai Union Group PCL reported a 46.5% year-on-year rise in its first-quarter net profit to 1.273 billion baht (US$39.8 million), as it said operational improvements continued, gross margins recovered further and sales volumes increased.
Gross profit, on the other hand, increased 29.3% from a year ago to THB4.382 billion ($137 million), while operating profit increased ten-fold year-on-year to THB1.020 billion.
Consolidated sales were up 0.1% to THB29.369 billion ($917.8 million) compared with the first quarter of 2018. However, excluding the impact of foreign exchange, sales value growth improved 2.3% year-on-year, driven largely by sales growth in the frozen and PetCare businesses.
Sales contribution from Thai Union's frozen and chilled seafood business rose 3.4%% year-on-year to THB11.529 billion ($360.5 million), due to improved frozen seafood sales in the US.
Another strong cash flow performance from operations helped to continue the deleveraging of the net debt to equity ratio to 1.35 from above 1.4 a year ago. During the quarter there was also growth from Thai Union Ingredients after the first 100 metric tonnes of refined tuna oil were shipped to customers producing infant formula.
"Our first-quarter performance was a positive start to the year for Thai Union. Thanks to continued operational efficiencies and continued margin recovery, we are starting to see the flow-on benefits, with a recovery in our overall performance and normalising of our operations," said Thiraphong Chansiri, CEO of Thai Union Group.
Last year Thai Union was ranked No. 1 in the world in the food products industry in the Dow Jones Sustainability Index, achieving a 100th percentile ranking for total sustainability score.