Thai Union posts record sales and net profit in 3Q22 as core businesses and diversified portfolio drive growth

• All-time high quarterly sales at THB 40.7 billion, up 14.7 percent year-on-year
• Record-high net profit at THB 2.5 billion, up 30.7 percent year-on-year
• Sales from PetCare, value-added & other products business up 55.9 percent year-on-year

BANGKOK– November 2, 2022 – Thai Union Group PCL today reported record sales and net profit during the third quarter, driven by strong core businesses, favorable foreign exchange and continued growth in the PetCare and value-added operations.

Revenue during the July-September period reached THB 40.7 billion, a 14.7 percent increase from a year earlier, while net profit for the period was up 30.7 percent year-on-year to THB 2.5 billion.

While inflationary pressures during the quarter continued across all markets where Thai Union operates, the Company was able to limit the impact through price negotiations with customers, hedging of key materials and foreign exchange, and strong inventory management.

The continued diversification of the business also contributed to the positive result, along with the focus on healthy gross margin. During the quarter, sales from the ambient seafood business grew 13.6 percent to THB 17.0 billion year-on-year as demand remained strong.

Sales of frozen & chilled seafood were stable from a year earlier at THB 14.8 billion. PetCare, value-added & other products category was also a key contributor to the quarterly performance, with sales up 55.9 percent to THB 9.0 billion, supported by strong demand, higher selling prices and the launch of new products.

“Our third-quarter performance reflects our continued push for greater business diversification, innovation, and a laser focus on cost efficiency,” said Thiraphong Chansiri, CEO at Thai Union Group. “Despite the ongoing global economic challenges, we have demonstrated that the emphasis on strengthening our core businesses and expanding into new innovative products can yield results in a period of strong headwinds.”

Thai Union reported nine-month sales split into three core business categories, with ambient seafood at 42 percent, frozen & chilled seafood at 37 percent and PetCare, value-added & other products business at 21 percent.

For the first nine months of 2022, the Company recorded sales of THB 116.0 billion, a 13.1 percent increase year-over-year, while the gross profit was up 8.7 percent to THB 20.3 billion. The gross profit margin was at 17.5 percent despite an increase in key material prices.

In preparation for continued growth and expansion, Thai Union has been constructing three new factories since mid-2021, which are expected to commercialize in 2023. These include two new factories in Samut Sakhon to produce protein hydrolysate and collagen peptide, and the other one some culinary products. The Company is also building a tuna cold storage facility and a waste water treatment plant in Ghana. Finally Thai Union is also expanding its wet pet food and treats capacity in Samut Sakhon, Thailand.

Caption: Thai Union Group’s 9M22 geographical diversity in sales

“At Thai Union, our strategy for business diversification covers not just our product portfolio but also geographical markets. Our global business teams are working across all our markets around the world to ensure that we will continue to grow and deliver healthy products to consumers while also supporting our goal of Healthy Living, Healthy Oceans,” said Chansiri.

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About Thai Union

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 45 years.

Today, Thai Union is regarded as one of the world's leading seafood producers and is one of the largest producers of shelf-stable tuna products with annual sales exceeding THB 141.0 billion (US$ 4.5 billion) and a global workforce of more than 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, Hawesta, and Rügen Fisch, Thai-leading brands SEALECT, Fisho, Qfresh, Monori, OMG Meat, Bellotta and Marvo, and ingredient and supplement brands UniQ®BONE, UniQ®DHA and ZEAvita.

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 participating company 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 when the company was listed on the Dow Jones Sustainability Indices (DJSI) for the eighth consecutive year in 2021. Thai Union was also named to the FTSE4Good Emerging Index for the fifth straight year in 2020.