Thai Union CEO, Thiraphong Chansiri. (Photo: Thai Union Group)

Thai Union registers record sales in 2017

THAILAND
Wednesday, February 21, 2018, 02:20 (GMT + 9)

Thai Union Group achieved around 15 percent rise in 2017 net profit, thanks to strong sales, higher income from restaurant chain Red Lobster, and better cost management.

The group´s gross profit was THB 18.14 billion (USD 577.4 million), while the gross profit margin remained at 13.3 percent, compared to 14.8 percent in 2016.

High tuna prices had a negative impact on Thai Union´s operations, but this was partly compensated by  prudent foreign exchange management and stringent cost controls in 2017.

The Selling, General & Administration to sales ratio was 9.8 percent, below the full year target of 10 percent. As a result, the net profit for last year increased 14.6 percent year-on-year to a record THB 6.02 billion (USD 191.6 million).

The company highlighted that its sales to North America continued to have a great weight in its revenues: they represented a 40 percent of total sales, while Europe contributed 32 percent.

The country´s domestic market grew to 10 percent of total sales, with Japan contributing six percent.

“Despite market volatility and higher raw material prices, our profitability remained resilient in 2017,” said Thiraphong Chansiri, CEO of Thai Union. “Raw material price pressures are relaxing as tuna prices started to decline since the fourth quarter of 2017,” he added.

Last year, sales contribution from Thai Union brands rose to 42 percent, and the rest came from private label sales.

Ambient sales remained stable at THB 61.14 billion (USD 1.94 billion).

Sales of frozen and refrigerated seafood increased by 2.7 percent year-on-year to THB 5.31 billion THB (USD 1.82 billion).

Sales of pet food (PetCare) and value-added products grew 3.5 percent to THB 18.07 billion (USD 575.2 million)

Looking ahead, Thai Union pretends tt continue making progress and maintain its focus on collaboration to address sustainability challenges confronting the global seafood industry. This includes digital traceability, providing worker connectivity at sea, educating children and providing nutritional information to local communities.


editorial@seafood.media
www.seafood.media

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