TUF Releases 4Q and Full-Year 2014 Financial Results
- 2014 total sales of THB 121.4 billion up 7.6%
- 2014 net profit of THB 5.1 billion, 78.5% increase from THB 2.85 billion in 2013
- Full year earnings per share of THB 1.099, an increase of 76.7 % per share compared with a year ago
- EBITDA increases 39.8 % comparing to 2013
- TUF plans to pay a dividend of THB 0.55 per share
- TUF expects another solid year with total revenues of USD 5 billion in 2015
Bangkok - (February 27, 2015) - Thai Union Frozen Products PCL. (TUF) today announced its financial results for fourth quarter and full-year 2014. For the full year 2014, TUF delivered the total sales of THB 121.4 billion or USD 3.7 billion reporting company's encouraging performance. The high record comes from an arrival of MerAlliance and King Oscar. Both transactions were completed in November 2014. The annual net profit revealed at THB 5.1 billion, up 78.5% year-on-year, retouching the record high in 2011. The net profit is mainly driven by margin and earnings recovery across all business categories especially in the tuna and pet food businesses.
2014 EBITDA increases 39.8% comparing to 2013 whilst earnings per share increased 76.7% to THB 1.099, compared to the previous year.
Fourth quarter result reflects a 7.7-percent increase in sales revenue from the previous quarter realized from a number of the company actions, including strategic portfolio initiatives from the branded business, continued productivity improvements related to company's operational excellence activities as well as positive contributions from the revenue consolidation of MerAlliance and King Oscar. TUF posted best-ever quarterly sales revenue of THB 32.8 billion or USD 1 billion, compared to the USD 30.8 billion in the fourth quarter of 2013.
Mr. Thiraphong Chansiri, President and CEO of Thai Union Frozen Products PCL. (TUF) commented that, "This is another great year with encouraging net profit and earnings. Our 2014 result demonstrates continued accelerated growth from our branded product portfolios and operational cost management initiatives. These activities remain a priority as well as leverage sourcing activity, operating and marketing synergies with the newly acquired companies, e.g., MerAlliance and King Oscar which we expect to see further results over time," It reflects our strong commitment to drive solid results and profitable growth for all."
Breaking down the 2014 revenue into the company's six core strategic product categories: the Tuna business commands a share of 44%, Shrimp and shrimp-related business 24%, Sardine and Mackerel business 5%, Salmon business 5%, Pet food business 7%, Value-added and other products 15%. The company revenue share by markets: USA 44%, EU 29%, Domestic market 7%, Japan 7% and other markets 13%.
Profitability has recovered well in the tuna business. In addition, the company's performance was particularly satisfactory with net sales growth in the salmon business thanks to its consolidation of MerAlliance and the Value-added and other products as a result of increasing in lobsters' sales performed by the US's subsidiary company, Chicken of the Sea Frozen Foods (COSFF).
Following strong growth in 2014, TUF's outlook for 2015 is unchanged. Mr. Chansiri continued, "We are well positioned for another solid year in 2015, as we continue to serve customers in all markets around the world with a wide variety of products categories with premium quality. We remain focused on generating superior returns for our shareholders and position TUF for the next stage of growth."
The company is moving ahead toward achieving its annual goal with the total sales target USD 5 billion by continued focusing on growth opportunities including an organic growth across all business categories and an emphasizing on business integration. "To pursue these opportunities, we perform with disciplined cost control and a focus on delivering highest quality products, innovation and ongoing commitment to sustainability across business units," Mr. Chansiri added.
"TUF also announced its annual dividend to be at THB 0.55 per share. This is a payout ratio exceeding 50 percent of the net profit and reaffirming the management's confidence in our business strength to continue its strong dividend distribution policy. We want our shareholders to be part of the business recovery and the strong earnings flow.
"After our M&A driven expansion in the last quarter, we will focus in 2015 on operational excellence, organic growth to achieve two times GDP growth and on integrating the acquired businesses to leverage synergies and strengthen our underlying operational performance." Mr. Chansiri concluded.
*The following part of the release is not for distribution in the United States
Company Plans to Increase Capital
On 27th February 2015, the Board of Directors of Thai Union Frozen Products Public Company Limited (TUF) has approved capital increase with an aim to obtain the proceeds of up to USD 400,000,000 (or equivalent to THB 13,200,000,000). The proceeds will be used principally to fund a part of the acquisition of Bumble Bee Foods, a leading packaged foods business in North America with presence across the shelf-stable seafood market in both the US and Canada.
TUF had previously announced the Bumble Bee acquisition and is expecting completion within H2/2015, but such completion remains subject to clearance by the United States antitrust authorities and other closing conditions as set forth in the acquisition agreement. Subject to applicable securities laws in jurisdictions outside the Kingdom of Thailand, the new shares will be offered to TUF's eligible existing shareholders, whose names are on the register book as of the date to be determined by TUF's Board of Directors, on a pro rata basis on their respective holdings (Preferential Public Offering).
This capital increase plan will be subject to the approval of the shareholders during the Annual General Meeting, scheduled on 3 April 2015.
These materials are not an offer of securities for sale in the United States or any other jurisdiction. No securities of TUF have been or will be registered under the US Securities Act of 1933, as amended (the "Securities Act"). Securities of TUF may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will be no public offering of TUF's securities in the United States.
About TUF
Thai Union Frozen Products Public Company Limited or TUF is the world's seafood expert bringing high quality, safe, delicious and convenient seafood products to customers across the world for over 38 years.
Today, TUF is regarded as the world's largest producer of shelf-stable tuna products with annual sales exceeding THB 100 billion (USD 3.8 billion) and a global workforce of over 35,000 people who are dedicated to pioneering sustainable, innovative seafood products.
The company is dedicated to producing sustainable, convenient and quality seafood products for healthy, happy families everywhere - its brand portfolio includes Thai-leading brands Sealect, Fisho and Bellotta; as well as highly recognized international brands Chicken of the Sea, John West, King Oscar, Petit Navire, Parmentier, Mareblu, and Century.
As a company committing to innovation and globally responsible business practices, TUF is proud to be a member of the UN Global Compact, a founding member of the International Seafood Sustainability Foundation (ISSF) and a recognized member of Dow Jones Sustainability Indices (DJSI) Emerging Markets 2014 - the first and only Thai company in the food products sector to be awarded.
For more information, please visit www.thaiuniongroup.com
or contact: Thai Union Frozen Products PCL Tel: +66 2 298 0024
Ms. Sasinan Allmand
Head of Corporate Communications
T: +66 2 298 0024 ext.568
F: +66 2 298 0024 ext. 679