Bangkok--28 Oct--Thai Union Frozen
Thai Union Frozen Products PLC (TUF), Thailand’s leading producer and exporter of canned and frozen seafood products, announced yet another record-setting performance, with the third quarter net profit breaking the one billion baht mark, hitting 1,017.9 million baht. The figure represented 12% growth from the same period last year. The remarkably profit growth was primarily a result of a higher proportion of higher value-added products that led to sustained expansion of the company’s profit margin and strong performances at TUF’s subsidiaries. It is expected that net profit for this year should certainly set a new record, simply because net profit for the first 9 months of 2009 surged to 2,625.4 million baht that already surpassed the previous annual record set in 2003.
TUF’s president, Thiraphong Chansiri, revealed, “The company net profit in Q3 reached 1,017.9 million baht, up 12% from last year’s 911.9 million baht as earnings per share for the period attained 1.15 baht, also up 12% from last year’s 1.03 baht in spite of slightly lower sales revenues in both Thai baht and US dollar term. In Thai baht term, Q3 sales fell 8% from 18,430.7 million baht in 2008 to 16,931.4 million baht this year while in US dollar term, sales revenues also dropped 8% from 544.9 million US dollar last year to 499.8 million dollar this year. Total revenues for the third quarter declined by 7% from 18,548.5 million last year to 17,217.9 million baht this year.”
Khun Thiraphong added that net profit for the first nine months of 2009 rose to 2,625.4 million baht, up 39% from 1,893.4 million baht for the same period last year. Sales for the nine-month period in Thai baht term amounted to 51,792.8 million baht, representing 2% increase from last year’s 50,638.6 million baht. In US dollar term, sales revenues during the period dropped 3% from 1,541.4 million US dollar in 2008 to 1,495.6 million US dollar this year. Total revenues, nevertheless, grew 3% from 51,080.3 million baht for the first nine months of 2008 to 52,416.5 million baht for the same period this year.
Regarding the significant net profit growth for the first nine months of this year, Khun Thiraphong revealed, “This year, our net profit should break all past records. We are confident that the total net profit for the year could reach 3 billion baht, easily surpassing the record 2003 net profit of 2,279 million baht. Overall performance during the third quarter is promising, especially with 12% growth in net profit from the same quarter last year, despite the fact that TUF has booked shutdown expenses worth 7 million US dollar due to the closure of its American Samoa tuna plant. That sent the administrative costs to a higher than usual level. Sales in US dollar or Thai baht term showed minimal growth from the same period last year, mainly caused by generally lower raw material prices that led to lower product selling prices. Nevertheless, thanks to a growing proportion of higher value-added products in our portfolio that was driven by our strong customer base, we managed to expand our product variety and margins. The combination of these factors, in addition to strong performances at our subsidiaries, contributed to a very satisfying overall performance for the quarter. After all, we are confident that TUF can continue to grow our sales and profits consistently and in a sustainable manner.”
For Q3 of 2009 alone, tuna products remain the largest item in the company’s product portfolio at 43%, followed by frozen shrimp (21%), canned seafood (8%), canned petfood (8%), canned sardines (7%), products for the domestic market (6%), canned sardines (4%) and frozen cephalopod (3%). Main export markets include the US (49%), Japan (12%), European Union (11%), Africa (5%), the Middle East (3%), Oceania (3%), Asia (2%), and Canada, and South America at 1% each. The domestic market accounts for 13% of total sales.
In addition, Khun Thiraphong announced that the relocation of production from the American Samoa plant to a new facility in the state of Georgia, USA, has been completed. The Georgia plant has started manufacturing canned tuna, with an output capacity of 4 million standard cases per year. The existing plant in American Samoa will be utilized as a cold storage facility for raw materials. That is expected to help save costs and enhance the group’s competitiveness.
Khun Thiraphong concluded,” Based on what we have seen in the past 9 months, the company is realizing its high profit-generating potential. That convinces us that we will set a new record for this year.”
For more information please contact:
Corporate Communications Department
Thai Union Frozen Products PCL.
Tel. 0-2298-0024 ext. 675-678