August 11, 2020

Thai Union reports second net profit up 1,440% to THB1.7 billion

Thai Union Group PCL. reported a net profit of THB1,716 million in the second quarter, an increase of 1,440 percent compared to the reported net profit of the same period last year.

Second quarter sales saw a 2.6% increase year-on-year to THB33,051 million. Overall, the first six months of 2020 saw the highest revenue growth in three years with total sales of THB64,154 million, up 4.2% year-on-year. The company plans to pay out an interim dividend of THB0.32 per share, an increase of 28% compared to the 2019 interim dividend of THB0.25 per share.

Profitability and cost control continued to improve across the business, with record high operating profit in the second quarter at THB2,366 million, while the company's SG&A ratio reached 11.1%, with a debt-equity ratio of 0.96. The company posted a quarterly gross profit margin of 18.2%, the highest level in three years. Strong operation profitability, prudent inventory management and strong cash conversion contributed to the free cash flow for the quarter of THB5,609 million.

"COVID-19 has presented enormous challenges to companies all around the world, both short-term and long-term. It has also led to increased demand for seafood products, particularly those stored in tins, in many parts of the world, with a corresponding effect on our sales and global supply chain," said Thiraphong Chansiri, CEO of Thai Union Group. "Thai Union continues to focus on stringent measures on health and safety for all of our people and our business operations to respond to this global pandemic. Amidst continued increasing global demand for seafood, we will continue to work hard to ensure business continuity and maintain production capacity in order to deliver quality products to our customers and consumers."

Sales growth in the second quarter was driven by strong performance from the ambient business, which recorded a 16.8% increase in sales to THB16,394 million and a 29.6% increase in sales volume to 101,136 tonnes, as consumers stocked up on food supplies in response to COVID-19. The frozen, chilled seafood and related business saw sales decline 14% to THB11,554 million, and sales volume decrease 10.5% to 61,284 tonnes due to the impact of the COVID-19 lockdown on the hospitality and food service sectors around the world.

PetCare, value-added and other business sales increased 7.5% to THB5,103 million on the back of increasing volumes, attributable to a stronger focus on higher margin products.

By region, North America contributed 42% of total sales, followed by Europe at 30%, the Thai domestic market at 10% and other markets at 18%.

- Thai Union