Thai Union Reveals Record-High Profit Margins of 17.3% and Robust Business Performance for the Third Quarter of 2015

• 3Q15 gross margin reached a 4-year high of 17.3%.
• The group’s consolidated sales stood at THB 32.6 billion, up 7.2% from the same period last year. This is a result of solid contributions from MerAlliance, King Oscar and Orion Seafood
• 3Q15 net profit continues to rise from the previous two quarters, reaching THB 1.63 billion.

Bangkok - (November 11, 2015) - Thai Union Group Public Company Limited (TU) has revealed its earnings performance for the third quarter of 2015. Total sales have increased 7.2%, from THB 30.4 billion to THB 32.6 billion when compared to the same period last year. Net profit climbed 15% QoQ reaching THB 1.63 billion and gross margins rose consistently to 17.3%, a record high for TU in the last four years.

3Q15 sales increase resulted from satisfactory performances from the latest acquisitions of MerAlliance, King Oscar and Orion. This has helped boost gross margins of OEM business sales. In addition, effective cost management amid rising prices of raw materials during the quarter also contributed to higher gross margins.

Net profit increased by 15% from the last quarter, which is reflective of TU's business strength. Despite fierce competition and constant challenges in the global market, the company continues to maintain growth. With its executives' strong vision and commitment to strengthen TU's financial stability through prudent business management, its cash flow is in a satisfying status thanks to the firm’s ability to reduce working capital. Another important indicator of its strong financial discipline is the company’s debts-to-equity ratio which has continued to go down from 0.85 times at the end of last year to 0.64 times this quarter.

In the third quarter, the company generated 37% of total sales from tuna; 29% from shrimp and related businesses; 9% from salmon; 7% from pet food; 6% from sardine/mackerel and 13 % from value-added and other products. The shrimp business significantly grew in this quarter, as a result of contributions from Orion Seafood's lobster business.

On the market front, the company registered 42% of total sales from the United States; 30% from Europe; 9% from the domestic market; 7% from Japan and 13% from other countries.

In the first nine months of this year, the company recorded THB 91.9 billion in sales. This is an increase of 3.6% from the same period of last year. Its nine-month net profit was THB 4.5 billion, which is up 3.5% from the first nine months a year before. In the corresponding period, gross margin edged up to 16.1%

Mr. Thiraphong Chansiri, President and Chief Executive Officer at Thai Union Group Public Company Limited (TU) stated, "I am very pleased with the third-quarter performance. Both OEM business sales and branded business have expanded through organic growth within core product categories. Additionally, gross margins reached 17.3%, the highest level in the last four years. Our debts-to-equity ratio has also gone down continuously from the end of last year to a satisfying level of 0.64 times, which reflects our strong financial disciplines.”

"Furthermore, the U.S. pet food business has made a recovery and yielded a satisfactory performance in this quarter. This performance also mirrors the company's competent management amid formidable challenges in the industry, currency situation and high competition in the global market”.

"Most importantly, we remain focused on our strategy which emphasizes organic growth by adding value to products and developing food innovation. We are also looking at possibilities for market penetration, particularly into emerging markets, and food services. Our goal is to achieve USD 8 billion revenue target by 2020, with a clear vision of being the world’s most trusted seafood leader, by caring for our resources and promoting the health of the oceans, while remaining fully committed to ensuring the safeguarding of our people and those employed in the fishing industry. We will continue to move forward sustainably as an exemplary responsible global corporate citizen”.

Recently, Thai Union Group repurchased shares of its subsidiaries, Thai Union Manufacturing Company Limited and Songkhla Canning Public Company Limited, from their shareholders. After the share repurchases, TU now hold a 99.66 percent stake in Thai Union Manufacturing and a 99.55 percent stake in Songkhla Canning. TU bought both companies' shares at the prices below the trading price-to-earning ratio of Thai Union shares on the Stock Exchange of Thailand. Thanks to these share repurchases, TU profitability will consequently be enhanced going forward, a positive to its shareholders.