Thai Union Group hits record Q3 sales despite tough market conditions
Thai Union Group Plc (Thai Union) reported a 0.4 per cent year-on-year sales increase in the third quarter of 2017, resulting in a record Bt35.18 billion despite significant currency exchange fluctuations and increased raw material costs. Consolidated net profit was Bt1.73 billion, up 8.9 per cent from the same period last year.
Third quarter gross profit declined 5.6 per cent from a year earlier to Bt4.65 billion, while the 3Q17 gross profit margin was 13.2 per cent compared to 14.1 per cent in 3Q16.
Sharply higher raw material prices, particularly from near-record-high tuna prices, along with continued European currency depreciations and a stronger Thai baht, contributed to the weaker margin.
Among Thai Union’s three major businesses, PetCare and value-added 3Q17 product sales grew the most at 2.9 percent year-on-year to Bt4.58 billion, on continued growth in the PetCare business. The ambient business sales rose 2.4 per cent from the same period last year to Bt15.83 billion on rising tuna prices, while sales from the frozen and chilled seafood business fell 2.4 per cent year-on-year to Bt14.77 billion.
During the first nine months of 2017, net profit grew 6.1 per cent year-on-year to Bt4.61 billion while total sales rose 0.8 per cent to Bt101.43 billion from the same period last year.