May 26, 2014
  

TUF reports 40% rise in net profit in Q1

 

The world's biggest canned tuna producer Thai Union Frozen Products Pcl (TUF) reported a 40% rise in its 1Q14 net profit due to an improving tuna business and currency gains.

Thai Union revealed that its net profit reached US$29 million in 1Q14 while revenue amounted to US$863 million from increased sales, particularly of tuna and shrimp.

President and chief executive Adirek Sripratak said the significant increase in net profit came mainly from the recovery of the livestock business.

The gross profit margin was 14.9% in the quarter. Tuna has dropped to US$1,200 a tonne from US$1,950 last year, according to the Bangkok Post.

Chief executive Thiraphong Chansiri considered the company was maintaining its sales revenue target of US$4 billion and targeted gross profit margin of more than 14% for this year.

However, compared with its usual gross profit margin of 15 to 16% recorded before 2013, the company will still not fully recover this year.

Chansiri explained that a drag-down factor is that the shrimp sector is still feeling the effects of early mortality syndrome (EMS), resulting in a slow recovery of domestic shrimp output.

TUF said its first quarter sales revenue rose 12% to US$3.18 billion from US$2.84 billion year-on-year. The increase was linked to both Thai and international operations.

The United States contributed 43% of the company's sales in the quarter, with 30% from the European Union, 7% from the domestic market, 5% from Japan and 16% from other markets.

Source: www.fis.com