November 14, 2023

Thai Union Group reports Q3 sales of THB 34 billion

In its third-quarter report, seafood producer Thai Union Group revealed sales of THB 34 billion, marking a slight 0.9% decrease from the previous quarter, and the company's net profit saw a substantial increase of 17.2% quarter-on-quarter, reaching THB 1.2 billion, Bangkok Post reported.

The growth in gross profit, up by 8.4% to THB 6.2 billion, was primarily attributed to reduced pressure from key raw material prices, portfolio rationalisation, and the implementation of profit protection measures, according to the company. However, the quarterly sales experienced a year-on-year decline of 16.8%, contributing to a 52.3% decrease in net profit from the same period last year.

Thai Union reported a solid gross profit margin of 18.4% in the third quarter. Thiraphong Chansiri, chief executive officer of Thai Union Group, emphasised the company's continuous efforts to enhance profitability, citing the success of the profit protection plan across all operations.

Frozen and chilled seafood sales showed a 0.9% increase quarter-on-quarter, reaching THB 11.6 billion. The gross profit margin in this category rebounded from 9.6% in the second quarter to 12.9% in the third, attributed to effective inventory management and the company's strategic focus on higher-margin products.

The value-added business experienced a significant 19.4% growth, reaching THB 2.7 billion in the third quarter, with a healthy gross profit margin of 28.9%. The petcare business also saw a recovery, with quarterly sales increasing by 19.1% to THB 3.8 billion, accompanied by a gross profit margin of 19.4%.

Sales in the ambient seafood business declined by 7.5% from the previous quarter to THB 15.9 billion, although maintaining a gross profit margin of 20.4%.

Sustainability remained a key focus for Thai Union during the third quarter, highlighted by the announcement of SeaChange 2030. Launched as an expansion of its 2016 sustainability strategy, the initiative includes ambitious goals for both people and the environment, with a commitment to achieving a 42% reduction in greenhouse gas emissions by 2030, eventually reaching net zero by 2050.

Thiraphong expressed confidence in the company's sustainability and innovation efforts to navigate an uncertain global economic climate, stating that they believe these initiatives will create new opportunities for growth and resilience.

-      Bangkok Post