THAILAND - Strong sales growth, higher Skipjack tuna prices and an increase in salmon raw material prices have all helped contribute to record high sales for the Thai Union Group.
Thai Union Group reported a 16.9 per cent rise in 2016 second quarter net profits to THB 1,527 million, supported by record sales and lower finance costs.
Consolidated sales were a record-high THB 34,441 million, up 9.3 per cent from the same period last year.
In the second quarter of this year, Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) was THB 3,181 million, an increase of 11.9 per cent year-over-year due to improved operations and lower finance costs because of continued debt repayments compared to the same period last year.
Operating profit reached THB 2,062 million, down 6.3 per cent year-on-year. Gross profit improved by 4.5 per cent, while the gross profit margin was 15.8 per cent, down slightly from 16.9 per cent in 2Q15.
A rise in raw material costs, particularly in the salmon and shrimp businesses, contributed to the slightly weaker margin.
TU sales in the US played an important role in the company’s revenue, accounting for 38.6 per cent of total sales in the first half of 2016. Thailand’s domestic market accounted for 7.9 per cent of total sales, while the European Union contributed 34.1 per cent of sales, widening from 29.4 per cent in full-year 2015. Japan sales contributed 6.1 per cent of total sales.
Thiraphong Chansiri, CEO of Thai Union Group noted: "This quarter clearly shows that our efforts to drive efficiency in our operations and financing are working. Profit growth is being delivered even in a challenging market for raw materials and difficult economic conditions in various markets around the world.”
TheFishSite News Desk