August 29, 2008

 

TUF expects to net US$3 billion in sales by 2012
    
 

Thai Union Frozen Products (TUF) expects annual sales to reach US$3 billion by 2012, driven by new products and expansion in Russia and the Middle East, according to president Thiraphong Chansiri on Thursday (August 28, 2008).

 

Thiraphong said the company's annual sales growth should return to normalcy by expanding 12-15 percent starting from the second half of 2008, with the net profit growing at a similar pace. TUF has been struggling with baht appreciation and high tuna prices. Sales rose in terms of US dollar but had remained static when converted into baht.

 

TUF is expanding its business in Russia and the Middle East to tap the wealth in those markets, Thiraphong added.

 

Recently, the company increased its 2008 sales forecast to US$2 billion, up from US$1.8 billion, due to a weakening baht, lower oil prices and ability to increase prices to reflect higher input cost. Thiraphong expects the profit margin for this year to improve if the dollar/baht exchange rate remains above the average THB 32 level earlier projected by the company.

 

Baht depreciation has helped to increase first half sales by 21.4 percent to US$946.4 million while net profit climbed 10.7 percent to US$35.4 million.

 

Thiraphong said steady raw material prices and a positive result from the shrimp anti-dumping tariff dispute with the US will be supportive factors for the second half performance.

 

TUF may issue US$58.5 million of bonds later this year to refinance its debts.

 

The company is Thailand's largest caned and frozen seafood processor and exporter.

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