August 4, 2023

 

Thai Union Feedmill releases Q2 2023 financial results

 

 

Thai Union Feedmill Co., Ltd. (TFM) recently reported its financial results for the second quarter of 2023 on August 2.

 

The company achieved sales of ฿1,343.6 million, a 5.3% increase compared to the previous year. It recorded an initial profit of ฿122.4 million, up by 32.7%, and a net profit of ฿47.8 million, a 41.6% increase.

 

In this quarter, the company had a 'special item' of ฿20 million related to the disposal of assets from a trial farm in Trang province, Thailand, due to the expiration of BOI investment tax incentives. Excluding this special expense, the net profit would have been ฿67.8 million.

 

Comparing Q2 results with the first quarter of the same year, TFM displayed positive performance, turning a profit of ฿47.8 million, a 272.3% increase. Initial profit increased by 156.4% and sales grew by 16.6% from the first quarter of the year.

 

Peerasak Boonmeesook, chief executive officer of TFM, who assumed his current position on January 1, 2023, emphasised the company's efforts to enhance various management systems, cost control and production quality. The company focused on meeting customer demands, especially concerning fresh and high-quality aquafeeds, and supporting optimal growth with low feed conversion ratios (FCR).

 

TFM aimed to foster profitable relationships with farmers and expand business opportunities within the Thai Union Group.

 

TFM's sales were categorised into three main segments: shrimp feed at 60.6%, fish feed at 29.3%, and livestock feed at 8.7%.

 

Sales from other sources accounted for 1.4%. In Q2 2023, shrimp feed sales reached ฿813.9 million, a 14.8% increase from the same period last year. Fish feed sales decreased by 9.3% to ฿394 million due to reduced sales in Pakistan despite strong performance in Thailand.

 

Livestock feed sales were ฿116.4 million, up by 6.5%, bolstered by increased sales in Pakistan.

 

Peerasak emphasised TFM's comprehensive management strategies and commitment to enhancing production efficiency, product quality and customer satisfaction.

 

Despite challenges posed by rising raw material costs, TFM's strategic management allowed it to achieve profitability this quarter and set the stage for continued growth throughout the year.

- TFM