Bangkok--6 May--Thai Union Frozen
TUF reported healthy growth in sales and net profit in Q1/2009 despite the ongoing economic crisis. Net profit rose 13% while sales in Thai baht and in US dollar terms grew 15% and 4% respectively. The company is confident in its potential to achieve sustainable business growth, and has revised its Thai-baht sales growth target from 8-10% to 15%.
Thiraphong Chansiri, president of Thai Union Frozen Products Public Company Limited (TUF), Thailand's major processor and exporter of canned and frozen seafood, revealed the company’s Q1/2009 financial results, which showed remarkable growth in net profit and sales, both in US dollar and Thai baht terms, despite the presence of several negative factors in the first three months of this year. Net profit for the quarter was Bt653 million, 13% higher than the first quarter of 2008, when net profit was Bt578 million. Sales in Thai baht term was Bt17,666 million, up 15% from Q1/2008, whose figure was Bt15,416 million. Sales in US dollar term also rose 4% to USD499 million from USD478 million in Q1/2008. Total revenues for the year’s first quarter also increased 12% from Bt15,988 million in Q1/2008 to Bt17,900 million in Q1/2009.
Mr. Thiraphong stated, “We managed to achieve sustained growth in sales during the first quarter of this year despite the presence of several risk factors at that time, namely the ongoing global economic crisis. TUF’s sales in dollar term continued to grow. Sales in Thai baht term, in particular, grew 15%. Compared to the same quarter of last year, the Thai currency has depreciated by 10% against US dollar, contributing favorably to our Thai bath sales figure. Quarterly profit was up, both when compared against the previous quarter and against the first quarter of last year. Apart from our ability to manage our operations efficiently, TUF has also been proved capable in risk management, as evident in the improvement in the financial result. For example, we have been continually reducing the size of our inventory, the amount of our debts, as well as achieving a better control of various cost drivers. These efforts have expanded our operating margin and raised our quarterly profit.”
Tuna products were the largest contributors to TUF’s overall sales, with a 48% share of the group’s total sales, followed by frozen shrimp at 17%, canned pet food at 10%, canned seafood at 9%, canned sardine and mackerel at 5%, products for the domestic market at 4%, shrimp feed at 4%, and frozen cephalopod at 3%. TUF’s major export markets included the US (51%), the European Union (15%), Japan (11%), and Africa (6%). Other markets include Australia (3%), Asia (2%), the Middle East (2%), Canada (1%), and South America (1%).
Mr. Thiraphong commented on the current economic situations, “Thai exports overall have been severely hampered, with this past quarter’s export value shrinking by 20.6%. Everyone is obviously concerned. However, not all sectors are affected to the same degree. While the food industry has suffered from a general reduction in consumers’ purchasing power, the potential for growth still exists, since food is a necessity item. As for TUF, we are confident in our ability to seek more business opportunities and generate more profits in the remaining 3 quarters of this year. Our strength lies in our solid market base, our emphasis on research and development, particularly on value-added products, our strong relationship with capable business allies as well as effective risk management and cost control. We are positive that these factors can propel TUF to achieve the 15% sales growth target we set for this year.”
As for the current concerns about the Mexican influenza pandemic, Mr. Thiraphong observed that there has been no sign that TUF would be adversely affected. On the contrary, consumers’ worries about pork products may lead to greater demand for seafood. However, he added that the company would be monitoring the matter closely.
On TUF’s international operations, Mr Thiraphong revealed, “In order to respond to the current economic crisis, our US subsidiary Tri-Union Seafoods, LLC., which owns the “Chicken of the Sea” brand, is planning to overhaul its supply chain with an objective to increase its operating efficiency. A new plant will be set up in the State of Georgia while the existing plant in American Samoa will be under restructuring. These undertakings should reduce our production costs and enhance our competitiveness.”
For more information please contact:
Auranut Simasanti
Tel: 02-298-0024, 02-298-0537-41 ext. 676