- Sales increased 5.9 percent to THB 31,103 million from strong ambient sales demand
- Operating profit up 49.9 percent to THB 1,529 million, with high plant utilization and gradually rising tuna prices
- Cash flow exceeded THB 1 billion in 1Q
- COVID-19 prompts major focus on health and safety, and business continuity to provide essential food products to consumers around the world
5 May 2020, BANGKOK – Thai Union Group PCL. reported first quarter sales of THB 31,103 million, an increase of 5.9 percent year-on-year and its best first-quarter sales performance in three years.
The growth in sales was driven by a strong performance from the ambient business with a 24.5 percent increase in sales volume to 99,599 tons, as consumers around the world stocked up on shelf-stable products in response to COVID-19. Cash flow in the first quarter exceeded THB 1 billion, reflecting strong cash flow generation and cash conversion ability.
The Company recorded an operating profit of THB 1,529 million, a 49.9 percent rise, reflecting the Company’s focus on cost controls and profitability. Thai Union’s SG&A to sales ratio was at 11.3 percent compared to 11.4 percent during the first quarter in previous year. However, net profit was 20.2 percent lower year-on-year mainly because of the impact of COVID-19 on strategic investments and foreign exchange loss.
The sales contribution from Thai Union’s ambient business grew 16.2 percent from the same period last year to THB 15,631 million. The frozen, chilled seafood and related business saw a drop in sales volumes of only 1.1 percent to 61,179 tons while sales were down 5.1 percent to THB 10,944 million, largely due to the impact of COVID-19 on its hospitality and F&B channels. The sales of PetCare, value-added and other business increased by 3.3 percent to THB 4,528 million, due to a continued focus on higher margin products.
North America contributed 43 percent of total sales in the first quarter, followed by Europe at 30 percent, the Thai domestic market at 11 percent, and other markets at 16 percent.
Caption: Thiraphong Chansiri, CEO, Thai Union Group PCL.
“The world changed dramatically in the first quarter with the impact of COVID-19 felt all around the world. Throughout this pandemic, Thai Union has continued to focus on the health and safety of our people and our business operations so that we can continue to deliver our products to our customers and consumers around the world in confidence and safety,” said Thiraphong Chansiri, CEO at Thai Union Group.
Thai Union Group also joined humanitarian efforts to support local communities and those affected by COVID-19 during the quarter. In the US, Chicken of the Sea donated more than 500,000 servings of canned tuna, salmon and other products to hunger relief organizations helping vulnerable populations within the local communities where the Company operates. In France, the Petit Navire factory donated 24,000 FFP2 masks to hospitals while MerAlliance donated 5,000 hygiene caps, 1,000 disposable lab coats and 38,000 protection aprons to support the hospital in Quimper. In the UK, John West donated 12,000 cans of Red Salmon to Age UK to help the elderly nationwide. Thai Union China donated more than 52,000 cans of King Oscar tuna to hospitals in Wuhan. In Thailand, more than 150,000 cans of tuna, sardine and mackerel products were delivered to hospitals and affected communities.
Also in the first quarter, Thai Union, in partnership with Mahidol University and the National Innovation Agency of Thailand, successfully hosted the first Demo Day for the SPACE-F food-tech incubator.
Thai Union also became the first food producer and Thai-listed company to join EP100, a Climate Group global initiative on smarter energy use and have pledged to double its energy productivity by 2041, measured against a 2016 baseline. At the same time, John West Holland won the Innova Classic Award for their MSC tuna steaks and MerAlliance took a major step in switching to a new packaging which is more recyclable and reduces the amount of plastic used.
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 one of the the world’s leading seafood producer and the largest producer of shelf-stable tuna products with annual sales exceeding THB 126.3 billion (US$ 4.1 billion) and a global workforce of over 44,000 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 and 2019 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 six consecutive years. Thai Union was also named to the FTSE4Good Emerging Index for the third straight year in 2018.