- Net profit of THB 1,273 million, an increase of 46.5 percent year-on-year
- Continued operating recovery in 1Q2019 with rise in operating profits to THB 1,020 million
- 1Q2019 sales of THB 29,369 million, with continued organic sales volume growth
Caption: Tuna production line at one of Thai Union's facilities in Samut Sakhon
Photo credit: Thai Union
7 May 2019, BANGKOK - Thai Union Group PCL (Thai Union) reported a 46.5 percent year-on-year rise in its 2019 first quarter net profit to THB 1,273 million, as operational improvements continued, gross margins recovered further and sales volumes increased.
Gross profit increased 29.3 percent from a year earlier to THB 4,382 million, while the gross profit margin improved to 14.9 percent from 11.6 percent 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 ten-fold year-on-year to THB 1,020 million with the Selling, General & Administration (SG&A) ratio at 11.4 percent, compared to 11.2 percent in the first quarter of 2018.
Consolidated sales were THB 29,369 million, up 0.1 percent from a year earlier. However, excluding the impact of foreign exchange, sales value growth improved 2.3 percent 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 THB 11,529 million, up 3.4 percent year-on-year, due to improved frozen seafood sales in the U.S. In addition, PetCare and value-added product sales grew 7.5 percent year-over-year to THB 4,384 million on higher volumes.
Sales contributions from Thai Union's brands remained stable at 42 percent in the first quarter, with the balance coming from the company's private label and food services sales. The U.S. remained the largest market with 40.4 percent of total sales in 1Q19, followed by Europe at 27.9 percent, the Thai domestic market at 13.1 percent, Japan at 4.7 percent and other markets at 13.9 percent.
Another strong cash flow performance from operations helped to continue the deleveraging of the net debt to equity ratio to 1.35 from above 1.4 a year earlier. During the quarter there was also growth from Thai Union Ingredients after the first 100 metric tons of refined tuna oil were shipped to customers producing infant formula.
"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 normalizing of our operations," said Thiraphong Chansiri, CEO of Thai Union Group.
During the first quarter, Thai Union continued to make positive progress in line with its sustainability strategy, SeaChange®. Alongside its partner WWF, Thai Union released its first Sourcing Transparency: Wild Caught Fish and Shellfish report, an important plank in the company's commitment to transparency across all its operations.
In February, Thai Union's sustainability efforts were again recognized. Thai Union, together with its partner WWF, scooped the award as leaders in 'Sustainable Supply Chains' at the prestigious edie Sustainability Leaders Awards. The award recognized "how partnerships can help drive change on a global scale." Thai Union and WWF have been working together since 2014 in Europe to deliver the commitments in the WWF 'Seafood Charter', which focuses on improving the sustainability of seafood supply chains.
About Thai Union Group
Thai Union Group PCL is the world's seafood leader bringing high quality, healthy, tasty and innovative seafood products to customers across the world for more than 40 years.
Today, Thai Union is regarded as the world's largest producer of shelf-stable tuna products with annual sales exceeding THB 133.3 billion (US$ 4.1 billion) and a global workforce of over 47,000 people who are dedicated to pioneering sustainable, innovative seafood products.
The company's global brand portfolio includes market-leading international brands such as Chicken of the Sea, John West, Petit Navire, Parmentier, Mareblu, King Oscar, and Rügen Fisch and Thai-leading brands SEALECT, Fisho, Qfresh, Monori, Bellotta and Marvo.
As a company committed to innovation and globally responsible behavior, Thai Union is proud to be a member of the United Nations Global Compact, and a founding member of the International Seafood Sustainability Foundation (ISSF). In 2015, Thai Union introduced its SeaChange® sustainability strategy. Find out more at seachangesustainability.org.
Thai Union's on-going work on sustainability issues was recognized in 2018 by being ranked number one in the world in the Food Products Industry in the Dow Jones Sustainability Index, achieving a 100th percentile ranking for total sustainability score. Thai Union has now been named to the DJSI for five consecutive years. Thai Union was also named to the FTSE4Good Emerging Index for the third straight year in 2018.
Head of External Communications