Jun 3, 2015

 

Thai Union Frozen profit rises 59% in first quarter

 

  
 

 

Thai Union Frozen Products PCL.'s (TUF) net profit during the first quarter jumped 58.7% to 1.507 baht (US$44.725 million) from the same period in 2014.

 

The company said that the impressive rise was due to the significant foreign exchange gains and continual sales growth, even as it maintained last year's first-quarter gross margin of 13.8%.

 

Consolidated sales rose 2.4% from THB27.948 billion ($829.578 million) a year ago to THB28.606 billion ($848.980 million) despite being a normally low season for the group.

 

TUF also attributed the sales growth to its strong branded business performance in Europe. It said that while the weakening euro helped boost its foreign exchange gains, it reduced sales and profit contribution from the company's European operations which, nevertheless, remained "solid".

 

Tuna accounted for 38% of total sales during the period, followed by shrimp and related business at 28%, sardine & mackerel at 6%, salmon at 9%, pet food at 6% and value-added and others at 13%.

 

Main buyer was the US, accounting for 43% of TUF's export revenues, followed the EU (28%), domestic market (9%), Japan (6%) and other countries (14%). The company noted a strong 25% growth in domestic sales during the first quarter, compared with the same period last year.

 

TUF president and CEO Thiraphong Chansiri described the first-quarter performance as "very satisfactory".

 

"Our focus for the remainder of the year is to achieve $5-billion revenue target through organic growth within core product categories and improved higher efficiency in all our operations across the globe", he said.

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