February 26, 2016
Thai Union reports record net profit
Seafood processor and exporter Thai Union Groupreported a record net profit of 6.1 billion Thai baht, or US$171.050 million (before one-time expenses), up 19.1% from THB5.1 billion ($143 million) in 2014. After the non-operational one-time expenses, however, net profit was THB5.3 billion ($148.6 million), still a new record. Cash flow based on earnings before interest, taxes, depreciation and amortization (EBITDA) also hit a record high at THB11.5 billion ($322.4 million, up 4.8% from a year ago.
The one-time non-operational expenses included those incurred from previously planned capital- and debt-raising activities (after the cancellation of the Bumble Bee transaction in early December 2015), an internal non-cash restructuring charge on the firm''s fishing business and other petty one-time charges, which all lessened the annual net profit by THB1 billion ($28.046 million).
Thai Union attributed the record results to strong performance of its leading seafood brands in Europe; successful integration of recent acquisitions MerAlliance (leading chilled smoked salmon producer in Europe), King Oscar (world premium sardine brand) and Orion (the largest lobster supplier in North America); and strong recovery of its Thailand-based shrimp processing operations, among others.
The US dollar appreciation against the Thai baht in the latter part of the year also created positive impact, it added.
However, Thai Union said, it had to hurdle challenges including the highly volatile euro, sharply lower tuna and shrimp raw material prices, major importing countries'' concern on Thailand''s sustainability issues and eventual cancellation of the Bumble Bee transaction.
Mr. Thiraphong Chansiri, president and CEO of Thai Union Group said, "The 2015 result demonstrates our resilience and ability to grow in spite of a host of challenges faced by Thailand and the global seafood industry. Volatile foreign exchange rates, global correction of tuna and shrimp prices, uncertain global economic conditions and sustainability issues faced by Thailand did not discourage us from outperforming the industry…. If without certain one-time expenses due to acquisitions and restructuring our fishing fleet in the last quarter, our bottom line would have set an even higher record".
Tuna category had the largest share of business, accounting for 37% of total sales, followed by shrimp and related business at 29%, salmon business 9%, pet food business 7%, sardine and mackerel business 6% and value-added and other products 12%.
The US remained Thai Union''s largest market in 2015 at 42%, followed by Europe at 29%, Thai domestic market at 8%, Japan at 6% and other markets at 14%.