Thai Union Group has reported 8.5% growth in sales to THB 38.9 billion (€1.1 billion) in the second quarter of its financial year, driven by increased demand and higher selling prices.
However, adjusted net profit declined 8.4% year-on-year to THB 2.2 billion (€61 million), excluding the one-time impact from the THB 424 million (€11.7 million) change in the fair value of Red Lobster’s preferred shares as a result of higher US interest rates and restructuring costs of THB 195 million (€5.4 million) in Rügen Fisch in Germany.
Sales in the first half reached a record THB 75.2 billion, up 12.3%, while adjusted net profit declined 12.7% to THB 3.9 billion (€110 million).
During the quarter, ambient seafood sales grew 10.7%, to THB 16.9 billion (€470 million), while the frozen and chilled seafood business saw a 6.5% year-on-year decline in sales, to THB 13.9 billion (€380 million), mainly due to the normalisation of foodservice businesses in the US after a strong performance in 2021.
The PetCare, value-added and other businesses unit posted a 41.7% year-on-year increase in sales, to THB 8.1 billion (€220 million), driven by strong demand for pet food and higher sales from value-added products.
“Business diversification continues to be the cornerstone of our ongoing growth path, reflected in our results for the second quarter, which remained robust despite the impact of two one-off items,” said Thiraphong Chansiri, CEO of Thai Union Group.
“Consumers around the world continue to be drawn to our healthy and nutritious products and, by delivering new and innovative products, we are excited to be attracting even more customers to our global portfolio of brands,” he added.
The John West has been focusing on higher-margin businesses and, during the second quarter, announced a CAD 10 million investment in Mara Renewables Corporation, a producer of sustainably grown algae-based bio-products.
The company also made progress on the construction of its protein hydrolysate and collagen peptide facilities and a new culinary factory, which are both planned to be commercialised in 2023.
In addition, it also published its ninth annual sustainability report during the quarter, highlighting how its programmes and initiatives are helping transform its operations and the global seafood industry.
Chansiri stated, “Thai Union remains on track to achieve our 2025 financial and business targets, but we recognise that economic conditions continue to present a challenge, including inflationary pressures in many markets, rising interest rates and ongoing supply chain issues. So, we are firmly focused on cost efficiency, continuing to strengthen our core businesses and building value-enhancing operations.”