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Consumer Trust Underpins Strong FY 2020 Earnings For Thai Union

Thai Union Group reported solid fourth quarter and annual results in financial year 2020, as consumers continued to spend more time at home, buying its products in a bid to adopt healthier lifestyles during the ongoing pandemic.

The company's fourth-quarter sales amounted to THB33.46 billion (€920 million), reflecting a year-on-year increase of 1.9%. 

Operating profit for the period rose 26.1% to THB 1.94 billion (€53 million), while net profit was up 37.9% to THB1.46 billion (€40 million).

The John West parent generated sales worth THB132.4 billion (€3.63 billion) in full-year 2020, up 4.9% compared to 2019, while net profit rose 63.7% to THB6.25 billion (€170 million). 

The company announced the second half of its 2020 dividend payout of THB0.40 a share, up 81.8% over the same period last year, bringing the full-year dividend to THB0.72 per share (+53.2% year-on-year).

'Strong Financial Performance'

Thiraphong Chansiri, CEO of Thai Union Group, said the company "delivered a strong financial performance in 2020, despite being faced with unprecedented challenges around COVID-19. 

"Demand for Thai Union's products grew as consumers cooked more at home as a result of the pandemic, and also shifted their eating habits towards a healthier, more nutritious diet."

Ambient seafood sales rose 8.8% to THB14.44 billion (€400 million) in the fourth quarter, while PetCare, value-added, and other products saw sales up 8% to THB5.29 billion (€140 million) on the back of increased purchases of shelf-storable products and pet food as people spent more time at home with their families and pets.

However, the frozen and chilled seafood and related business unit saw a sales decline of 6.5% to THB13.74 billion (€380 million) in the fourth quarter of the year.

A Sustainable Company

The year 2020 was an important one for the company in terms of sustainability as it received a Gold Class distinction in the S&P Global Sustainability Yearbook 2021.

The distinction places Thai Union as one of the world's highest-performing sustainable companies and one of just five to receive a Gold Class distinction in the food industry following S&P's Global Corporate Sustainability Assessments of more than 7,000 companies from 61 industries around the world.

The company was also listed on the Dow Jones Sustainability Indices (DJSI) for the seventh straight year and ranked second in the world on the Food Products Industry Index.

Thai Union also invested in various start-ups around food production in 2020, including Manna Foods, Alchemy Foodtech, and HydroNeo.

In January 2021, the company announced an investment in BlueNalu, a start-up specialising in cell-based seafood production, through its venture fund.

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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