Thai Union Group PCL has reported a 16.5% year-on-year increase in sales, to THB 36.3 billion (€990 million), in the first quarter of its financial year, driven by robust global demand and strong core business performance.
The John West parent saw gross profit increasing by 15.4% during the quarter, to THB (€180 million), on the back of cost containment measures, consumer trust and demand for products across Asia, Europe and North America.
However, net profit decreased by 3.2%, to THB 1.7 billion (€47 million), due to inflationary pressures and increased supply chain and global logistics constraints.
'Strong Quarterly Result'
Thiraphong Chansiri, CEO of Thai Union Group, commented, "While we face persistent challenges, I am pleased that we were able to deliver a strong quarterly result and top line growth across our three core business units.
"Thai Union also continues to prioritise the health, wellbeing and safety of its employees in light of the ongoing pandemic and Omicron variant, by enforcing strict COVID-19 preventive measures. This has allowed us to continue to manage our global production network well, and to deliver safe, quality, nutritious food products to consumers around the world."
Sales in the company's ambient seafood division increased 14.3%, to THB 15.5 billion (€42 million), boosted by stronger sales volumes, favourable foreign exchange environment, and an increase in selling prices.
The frozen and chilled seafood business saw a 14.2% rise in sales, to THB 13.8 billion (€38 million), driven by continued strong demand, particularly of shrimp products in Asia, the recovery of the foodservice sector in the US and Europe, and favourable foreign exchange environment.
The company added that it utilised automation to improve production efficiency and manage cost per unit.
Thai Union's PetCare unit, value-added and other businesses, saw sales jumping 27.2%, to THB 7.0 billion (€190 million), as people continued to spend more on their pets.
The company continued to expand its business during the quarter with a joint-venture company in India – RBS-TU Food Ingredients Private Limited – focused on serving high-quality food ingredients.
It also launched a new joint venture with Pacific Cold Storage Co., Ltd. for the construction of a cold storage facility in the Samut Sakhon province of Thailand.
Chansiri added, "Business diversification remains a key strategy for us as we continue to invest and expand our business into high-margin areas where we can use innovation to create greater value, and optimise materials processed in our plants.
"With a focus on health and wellbeing across our group's portfolio, we will strengthen the growth and profitability of our core businesses and expand into new, attractive areas to support our commitment to 'Healthy Living, Healthy Oceans'."
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.