11 August 2020, BANGKOK – Thai Union Group PCL. (Thai Union) reported a net profit of THB 1,716 million in the second quarter, an increase of 1,440 percent compared to the reported net profit of the same period last year. Second quarter sales saw a 2.6 percent increase year-on-year to THB 33,051 million. Overall, the first six months of 2020 saw the highest revenue growth in three years with total sales of THB 64,154 million, up 4.2 percent year-on-year. The company plans to pay out an interim dividend of THB 0.32 per share, an increase of 28 percent compared to the 2019 interim dividend of THB 0.25 per share.
Profitability and cost control continued to improve across the business, with record high operating profit in the second quarter at THB 2,366 million, while the Company's SG&A ratio reached 11.1 percent, with a debt-equity ratio of 0.96. The Company posted a quarterly gross profit margin of 18.2 percent, the highest level in three years. Strong operation profitability, prudent inventory management and strong cash conversion contributed to the free cash flow for the quarter of THB 5,609 million.
Caption: Thiraphong Chansiri, CEO at Thai Union Group
"COVID-19 has presented enormous challenges to companies all around the world, both short-term and long-term. It has also led to increased demand for seafood products, particularly those stored in tins, in many parts of the world, with a corresponding effect on our sales and global supply chain,” said Thiraphong Chansiri, CEO at Thai Union Group. “Thai Union continues to focus on stringent measures on health and safety for all of our people and our business operations to respond to this global pandemic. Amidst continued increasing global demand for seafood, we will continue to work hard to ensure business continuity and maintain production capacity in order to deliver quality products to our customers and consumers."
Sales growth in the second quarter was driven by strong performance from the ambient business, which recorded a 16.8 percent increase in sales to THB 16,394 million and a 29.6 percent increase in sales volume to 101,136 tons, as consumers stocked up on food supplies in response to COVID-19. The frozen, chilled seafood and related business saw sales decline 14 percent to THB 11,554 million, and sales volume decrease 10.5 percent to 61,284 tons due to the impact of the COVID-19 lockdown on the hospitality and food service sectors around the world.
PetCare, value-added and other business sales increased 7.5 percent to THB 5,103 million on the back of increasing volumes, attributable to a stronger focus on higher margin products.
By region, North America contributed 42 percent of total sales, followed by Europe at 30 percent, the Thai domestic market at 10 percent, and other markets at 18 percent.
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.