THURSDAY, March 28, 2024
nationthailand

Thai Union sees 46.5% surge  in Q1 net profit 

Thai Union sees 46.5% surge  in Q1 net profit 

THAI UNION Group Plc has reported a 46.5 per cent year-on-year rise in its 2019 first quarter net profit to Bt1.27 billion, as operational improvements continued, gross margins recovered further and sales volumes increased.



“Our first quarter performance was a positive start to the year for Thai Union. Thanks to continued operational efficiencies and continued margin recovery, we are starting to see the flow-on benefits, with a recovery in our overall performance and normalising of our operations,” said Thiraphong Chansiri, CEO of Thai Union Group.
Gross profit increased 29.3 per cent from a year earlier to Bt4.38 billion, while the gross profit margin improved to 14.9 per cent from 11.6 per cent in the first quarter last year. Stable raw material prices along with stronger performances from Thai Union’s ambient seafood and PetCare businesses contributed to the recovery. 
Operating profit increased 10-fold year on year to Bt1.02 billion with its selling, general and administration (SG&A) ratio at 11.4 per cent, compared to 11.2 per cent in the first quarter of 2018. 
Consolidated sales were Bt29.36 billion, up 0.1 per cent from a year earlier. 
However, excluding the impact of foreign exchange, organic growth in sales value improved 2.3 per cent year on year, driven largely by sales growth in the frozen and PetCare businesses.
The sales contribution from Thai Union’s frozen and chilled seafood business rose to Bt11.52 billion, up 3.4 per cent year on year, due to improved frozen seafood sales in the US. 
In addition, PetCare and value-added product sales grew 7.5 per cent year over year to Bt4.38 billion on higher volumes.
Sales contributions from Thai Union’s brands remained stable at 42 per cent in the first quarter, with the balance coming from the company’s private label and food services sales. 
The US remained the largest market with 40.4 per cent of total sales in the first quarter this year, followed by Europe at 27.9 per cent, the Thai domestic market at 13.1 per cent, Japan at 4.7 per cent and other markets at 13.9 per cent.
Another strong cash-flow performance from operations helped to continue the de-leveraging of the net debt-to-equity ratio to 1.35 from above 1.4 a year earlier. 
During the quarter, growth was also recorded at Thai Union Ingredients after the first 100 tonnes of refined tuna oil were shipped to customers for the productionof infant formula.
 

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