Bangkok-headquartered Thai Union Frozen Products (TUF) on May 15 reported that net profit for the first quarter of 2015 was up almost 59% to THB 1,507 million. The result was attributed to significant foreign exchange gains and continued sales growth, while the gross margin of 13.8% maintained at about the same level as in last quarter of 2014.
TUF’s consolidated sales reached THB 28,606 million, a rise of 2.4 % from THB 27,948 million a year ago. Growth could have been stronger was it not for price pressure on tuna and shrimp raw material that reduced sales value and impacted OEM sales.
The weakening value of the euro currency, while helping boost the company’s foreign exchange gains in the quarter, also reduced the sales and profit contribution from European operations which otherwise turned in solid performances during the period.
The proportion of sales contribution of TUF’s six strategic categories in the first quarter was generally stable. Tuna accounted for 38%, followed by frozen shrimp and related business (28%), value-added and other products (13%), salmon (9%), sardine and mackerel business (6%), pet food (6%). Sales of shrimp and related business, the sardine and mackerel unit, and salmon all reported higher volumes from a year ago, due to contributions from newly acquired MerAlliance, King Oscar and Orion.
The United States, partly driven by the frozen product category, accounted for 43% of the company’s revenues. Next came the EU (28%), other countries (14%), the domestic market (9%) and Japan (6%).
Pleased with first quarter results, President and CEO Thiraphong Chansiri commented: “The focus for the remainder of the year is to achieve our US $5 billion revenue target through organic growth within core product categories and improved higher efficiency in all our operations across the globe.”
