Thai Union sees record sales for seventh successive year
Thai Union Group Plc reported a 7.3-per-cent year-on-year increase in consolidated sales in 2016 to a record Bt134.375 billion (US$3.8 billion). This is the seventh consecutive year the group has reported record sales.
Gross profit rose by 2.2 per cent, while the gross profit margin was 14.8 per cent, compared to 15.6 per cent 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 Selling, General & Administration-to-sales ratio coming in at 9.8 per cent, the lowest level in three years. Net income remained stable with only a 0.9 per cent year-on-year reduction to Bt5.25 billion.
Sales in the US continued to play an important role in the company’s revenue, accounting for 39 per cent of total sales in 2016. Thailand’s domestic market accounted for 8 per cent of total sales, while Europe contributed 33 per cent -- increasing from 29 per cent in 2015. Japan contributed 6 per cent of total sales, according to the company’s chief executive officer, Thiraphong Chansiri.
