Trust in Thai Union products underpins strong 2020 earnings as consumers continue embracing healthier lifestyles

Operating profit rose 26.1 percent to THB 1.94 billion in Q4, with net profit up 37.9 percent to THB 1.46 billion driven by Ambient seafood and PetCare business.

22 February 2021, BANGKOK – Thai Union reported solid fourth quarter and annual financial results for 2020 today as consumers continued to spend more time at home with their families and pets, choosing Thai Union products to help them embrace this healthier lifestyle in the midst of the ongoing pandemic.

The company reported 4Q2020 business performance that showed total sales of THB 33.46 billion, which reflect a slight year-on-year increase of 1.9 percent. Operating profit rose 26.1 percent to THB 1.94 billion, with net profit up 37.9 percent to THB 1.46 billion.

Ambient seafood sales rose 8.8 percent to THB 14.44 billion over the quarter, while the PetCare, value-added and other products sales gained 8 percent to THB 5.29 billion compared to the same period last year on the back of increased purchases of shelf-storable products and pet food as people spent more time at home with their families and pets.

However, the Frozen and chilled seafood and related business unit saw a slight sales decline of 6.5 percent to THB 13.74 billion in the fourth quarter of the year.

For the full year, Thai Union ended 2020 with a healthy performance. Full year sales came in at THB 132.4 billion, an increase of 4.9 percent, while net profit rose 63.7 percent to THB 6.25 billion. The company announced the 2H2020 dividend payout of THB 0.40 a share, an increase of 81.8 percent over the same period last year, bringing the full year dividend to THB 0.72 per share, an increase of 53.2 percent year-on-year.

“Thai Union Group delivered a strong financial performance in 2020, despite being faced with unprecedented challenges around COVID-19. Demand for Thai Union’s products grew as consumers cooked more at home as a result of the pandemic, and also shifted their eating habits towards a healthier, more nutritious diet,” said Thiraphong Chansiri, CEO at Thai Union Group. “Thai Union continues to focus on the health and safety our employees, partners and supply chain ecosystem so that we can ensure the continuity of our business in order to deliver safe and quality products to consumers around the world.”

Thai Union continues to actively support customer desire to see healthier oceans and live healthier lives. Sustainability continues to play a critical role in the Thai Union business, with its global sustainability strategy, SeaChange®, continuing to set the standard for the seafood industry. In 2020, the company was listed on the Dow Jones Sustainability Indices (DJSI) for the seventh straight year and ranked second in the world on the Food Products Industry Index.

The company was also recognized as one of the world’s highest performing sustainable companies, receiving a Gold Class distinction in the S&P Global Sustainability Yearbook 2021 - one of just five companies to receive a Gold Class distinction in the food industry following the S&P’s Global Corporate Sustainability Assessments of more than 7,000 companies from 61 industries around the world.

Thai Union last year also continued to invest in high margin business such as ingredients and food-tech innovations, including UniQTMBONE bone powder, produced by converting tuna bone into a fine, off-white powder with a neutral taste and smell that can be easily used for various types of food, capsules, tablets and as an additive for pet food and pet nutrition. It is being produced at Thai Union Group PLC’s recently-opened bone powder production facility at the Songkla Canning factory in southern Thailand.

The company continued investing, for the second year, in startups through SPACE-F, the global food tech incubator and accelerator program the company co-founded in 2019 to build an innovation ecosystem based on innovative new technologies that will help support healthier lives.

Thai Union has so far invested in six startups and two joint venture companies focusing on innovative, new businesses that respond to the needs of today’s consumers. Last year the company invested in four startups. Three of the startups, Manna Foods, Alchemy Foodtech and HydroNeo, focus on alternative protein, functional food and high technologies for aquaculture farming respectively. Singapore-based Agritech, the fourth startup, is funding VisVires New Protein. This market is still emerging in Thailand, but it has huge potential as the global market for alternative protein is estimated at US $12.8 billion and expected to expand at a CAGR of 6.8% between 2019-2025.

Thai Union also continued to provide humanitarian assistance to those impacted by COVID-19 across the globe, donating more than 3-million servings of its products over the year, while also supporting local communities where it operates.

“While 2020 was without doubt a year of immense challenges, through robust management and the dedication of our workers, Thai Union is a much stronger company today than it was 12 months ago. On the positive side, we reached closure on all the outstanding elements surrounding the US antitrust litigation, and that chapter is now closed and firmly behind us,” Chansiri said.

“Our 2020 performance shows that our healthy and nutritious products walked hand in hand with customers during these tough times. I believe we are always stronger when we come together, and I remain confident that we will jointly continue to meet the needs of consumers around the world who choose our products,” he concluded.

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 world’s leading seafood producers and is one of 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 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 fifth straight year in 2020.