Bangkok--Nov 10--Thai Union Frozen
UF announced Q3/2005 operating performance with year-on-year growth of Bt659.2 million, or 17%, in net earnings. Sales achievement for 9-month period rose by 15% year-on-year. Sharpened focus on cost controls contributed to higher profit margin. 2005 overall sales are estimated to top USD1.3 billion.
According to Mr. Thiraphong Chansiri, president of Thai Union Frozen Products PCL. (TUF), TUF delivered Q3/2005 operating results as follows; sales in USD and baht terms grew year-on-year by 9% to USD351.5 million, or Bt14,510.9 million; net earnings expanded year-on-year by 16.8% from Bt564.3 million to Bt659.2 million; and earnings per share stood at Bt0.76, an increase of 16.4% from a year earlier period.
With regards to operating performance during the 9-month period of fiscal 2005, TUF generated sales of USD987.1 million, or a year-on-year 15% growth, from USD854.8 million. Sales in Thai baht was Bt39,599.0 million, also a year-on-year15% growth from Bt34,555.4 million achieved in the corresponding period of 2004. Net earnings was recorded at Bt1,629.8 million, a year-on-year growth of 15.8% from Bt1,407.1 million. Earnings per share was heightened by 15.3% year-on-year to Bt1.88.
“We achieved exceptional performance beyond our target because we practiced good cost controls, which in turn increased our profit margin. During the Q3, our tuna and shrimp feed sales grew by 14%. In addition, our subsidiaries in the U.S. also reported stronger performance. Chicken of the Sea had constant growth in both sales and profit although the global economic outlook was bleak. This is because our products are considered daily food essentials. Normally, under the current uncertain economic condition, consumers are more careful about their spending. In this case, our products, tuna in particular, should gain more benefits, as it is a cheap commodity with high demand dynamics. Nevertheless, we anticipate that our overall annual sales for fiscal years 2005 may top USD1.3 billion.”
TUF president continued that during the Q3/2005, volume in terms of ton were up by 4% from the corresponding period of 2004, with frozen tuna loin and canned tuna collectively accounted for 51% of the total sales; frozen shrimp (23%), canned seafood (8%), canned petfood (7%), shrimp feed (5%), frozen cephalopod (2%), and domestic sales (4%).
Our export performance can be broken down as the U.S. as major customer with 25% share, followed by Japan (21%), and the remaining destinations can be broken down as follows; EU (13%), the Middle East (7%), Asia (non-Japan) and Australia (5% each), Africa and Canada (4% each), South America (1%), and domestic sales (15%). The figures shown are exclusive of the sales contribution by the Chicken of the Seas and Empress International Ltd. in the U.S. territory.
“We constantly realize that in food industry we need to focus on quality- and standard-oriented policy, which should be implemented along with regular improvement in quality. Apart from those, on-time delivery of finished products is also vital. With these in mind, we and Thai Union Seafood Co., Ltd., our subsidiary, were given the Vendor of the Year Award and Food Safety and Quality Award in the 6th Darden Annual Awards hosted by Darden Restaurants, Inc., which is the world’s largest restaurant chain operator with over 1,400 branches worldwide composing Red Lobster, Olive Garden, Bahama Breeze and Smokey Bones Barbecue & Grill and Seasons. The awards were granted to us on the basis of our conformity with to required product quality and manufacturing standards,” the president concluded.
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