Bangkok, 11 November 2013 -- TUF has announced its operating performance in the third quarter of the year 2013, with a net profit increase of 180% from the previous quarter. The company is optimistic about the last quarter of the year despite the ongoing challenges in its shrimp business.
Mr. Thiraphong Chansiri, President of Thai Union Frozen Products PCL. (TUF), the world's leader in innovative and quality seafood products with a portfolio of global brands, disclosed the company’s Q3/2013 operating results with consistent sales growth in both US Dollar and Thai Baht. The Company’s sales were USD 936 million, rising 3% from Q3/2012. The sales value in Thai baht terms was 29,464 million, increasing by 4% from the same period last year. Furthermore, Q3/13’s net profit reveals THB 1,004, increases 180% comparing to the last quarter. This is strong growth compared to the two previous quarters given the continuous fishing and shrimp industry challenges.
The Company’s revenues breakdown by its six main strategic product groups: tuna business (49%), shrimp and shrimp related business (24%), sardine and mackerel business (6%), salmon business (4%), pet food business (7%), value-added products and other business (10%). The Company’s revenues by market include the US (40%), Europe (30%), domestic market (7%), Japan (8%), and other countries (15%).
“We have been operating our business for over 25 years, never before have we faced with such unprecedented challenges. This is the first time the company was challenged with difficulties of this scale. EMS in shrimp and fluctuated tuna prices greatly affected the company’s performance in the first two quarters. However, the third quarter has shown much improved performance than ever expected, with 180% increase in the net profit,” said Mr. Chansiri.
“Production & operation management optimization was rigorously employed ensuring highest production efficiency which has played a key part in improving the overall performance. The company is also focusing on product innovation; offering value-added products to accommodate a stronger demand from the market. The innovation front is run by both local and international teams with impressive outcome of their contributions with the gross margin increased by 14%, up from 12% in the last quarter,” Mr. Chansiri added.
In general, the company generated better operational profit, with the first nine months’ total sales growth of 4% for US Dollar and 2% for Thai Baht. However, the net profit declined compared to the said period due to the fluctuated price of shrimp and tuna in the first half of the year. The higher demand for shrimp is resulting in increasing sales compared to the last quarter even though the low supply of shrimp raw materials remains a challenge.
In this quarter, the company also sees more stability of tuna prices compared to the first half of the year and ensures better export performance. The company also expects to see the same level of demand in the next quarter resulting from higher consumer confidence.
“This year the company has seen fluctuations in many aspects of its business, largely due to external factors. However, it believes it has passed the lowest point. The issue regarding shrimp raw materials has been improving from the first half of this year due to shrimp farmers’ ability to prevent juvenile shrimps from EMS (Early Mortality Syndrome). Nevertheless, the company is closely monitoring the EMS
situation as well as taking on other precautions to ensure that business continues to generate positive results. The aforementioned strategies are expected to help TUF grow in a sustainable way; focuses on efficient resource management and ongoing development of its people.