Thai Union Group reports seventh consecutive year of record sales 

Gross profit rose by 2.2 per cent, while the gross profit margin was 14.8 per cent, compared with 15.6 per cent as reported in 2015. 
Continued high salmon prices and higher-than-expected tuna prices contributed to the weaker margin. This was partly offset by stringent cost controls, with the ratio of SGA (selling, general and administration costs) to sales coming in at 9.8 per cent, the lowest in three years. As a result, net income remained stable with only a 0.9-per-cent year-over-year reduction to Bt5.25 billion.
Sales in the United States continued to play an important role in the company’s revenue last year, accounting for 39 per cent of total sales. Thailand’s domestic market accounted for 8 per cent of total sales, while Europe contributed 33 per cent, widening from 29 per cent in full-year 2015. Japan contributed 6 per cent of total sales.
Chief executive officer Thiraphong Chansiri said TU’s 2016 results showed that demand for its products remained strong. 
“Despite challenging costs for raw materials and economic volatility in various markets around the world, we delivered a stable bottom line,” he said. 
TU announced a final dividend of Bt0.31 per share, making a 2016 full-year dividend of Bt0.63 per share, representing continued dividend stability, despite strong operational headwinds. 
The 2016 sales contribution from Thai Union’s brands remained stable at 42 per cent, with the balance coming from the company’s private-label sales. 
Company-wide sales saw growth across all three major segments in 2016. Ambient sales came in at Bt61.04 billion, a 3.2-per-cent rise over 2015. Sales for the frozen and chilled seafood business climbed to Bt55.83 billion, up 11 per cent over 2015. Pet-care and value-added sales rose to Bt17.5 billion, an increase of 8 per cent year-over-year.
The increase in total sales value was driven by continued organic growth, increased contribution from Ruegen Fisch in Germany, consolidation of the Chez Nous acquisition in Canada, and improved domestic shrimp exports, the company reported.
In October, Thai Union made a US$575-million (Bt20.1 billion) strategic investment in Red Lobster, the world’s largest seafood-restaurant chain. The investment contributed a 7.7-per-cent year-on-year EPS (earnings per share) accretion during the fourth quarter of 2016, the first quarter into the investment.
In December, TU announced an ambitious strategy to ensure 100 per cent of its branded tuna is sustainably sourced, with a commitment of achieving a minimum of 75 per cent by 2020. 
As part of the new tuna strategy, TU is investing $90 million in sustainability initiatives, which include establishing 11 new fishery improvement projects around the world. 
The company says it believes traceability is the backbone of sustainability, and has developed a number of sustainable-development initiatives to improve transparency in the supply chain.