Brisk exports of branded tuna and frozen shrimp saw net profits for Thai Union Frozen Products Co. (TUF) surge almost 324% to Bt 1,522 million during the second quarter of 2014 that ended on June 30. Total sales grew by 7.6% year on year to Bt 30,528 million.
The Amphur Muangsamutsakorn, Samutsakorn-headquartered company, in a statement to the Stock Exchange of Thailand on August 14, reported: “Sales in the US and European markets showed strong growth year on year thanks to our US frozen shrimp trading operation and the high season of our EU operation. Sales in the Japanese market were lower due to sluggish demand.”
Total quarterly sales, including valued added ready-to-eat products and pet food, advanced 8% over the same period in 2013. The gross margin rose 16.1% in the second quarter, compared with 12.4% last year.
Other positive factors noted included greater sales generated by TUF’s branded business, which now represents 43.57% of total revenues, compared with 41.59% last year. Meanwhile, raw material costs for tuna were lower while higher gross margins were realized from frozen shrimp exports, which suffered a loss during the second quarter of 2013.
Looking at first-half operating results for 2014, TUF’s net profit increased by 139.1% from Bt1.033 million a year ago to Bt 2,471 this year. Sales for the half reached Bt 58,206.6 million, representing a 10.7% gain over the corresponding period last year.
The company announced that it will pay stockholders a dividend of Bt 1.20 per share on August 27.
