Thai Union Group Posts Gross Profit Increase In Q2
Thai Union Group has posted a gross profit of THB 5.36 billion (€155.70 million), up 13.1% year-on-year, in the second quarter of its financial year.
The John West parent said that its gross profit margin grew to 16.7% during the quarter, from 14.0% in the same period last year.
The company attributed the growth to strong performances in its frozen seafood, pet care and value-added products businesses.
However, consolidated sales declined 4.6% year-on-year to THB 32.2 billion (€930 million) during the quarter.
This was mainly because of the Thai baht’s appreciation, the depreciation of EU currencies and lower raw material prices, the company said.
'Challenging Operating Environment'
Thai Union chief executive, Thiraphong Chansiri, said, "Profitability remains a key focus for us at Thai Union, and the overall performance in the second quarter was pleasing, particularly in a challenging operating environment."
In the first half of 2019, North America accounted for 39% of the company's total sales, followed by Europe (29%), the Thai domestic market (12%), and other markets (19%).
The company's ambient seafood sales fell by 14.3% year-on-year to THB 14.03 billion (€410 million) in the second quarter, while gross profit was up 9.1%.
In the frozen and chilled seafood segment, sales increased by 3.6% year-on-year to THB 13.44 billion (€390 million), driven by volume growth of 10% compared with 2018.
The pet care and value-added products division saw a year-on-year sales increase of 6.7% to THB 4.75 billion (€140 million) during the quarter, it said.
Chansiri added, "As we look ahead, Thai Union will continue to see new innovative products developed and launched into the market, which will provide us with new revenue streams as we work to build a business with sustainable growth."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.