Fresh shrimp. (Photo: TUF)
Q1 earnings skyrocket by 95pc for TUF
Friday, May 11, 2012, 15:20 (GMT + 9)
Thai Union Frozen Products Plc (TUF) has announced its 2012 first-quarter results with net profit at THB 1.47 billion (USD 47.3 million) -- a 95 per cent growth compared to THB 760 million (USD 24.5 million) in Q1 2011.
Quarterly sales in USD terms were USD 822 million, up 11 per cent from a year ago. Sales in THB terms also grew by 11 per cent from the same period.
Total revenues for the quarter amounted to THB 25.8 billion (USD 830.2 million), up 12 per cent from the first quarter of 2011.
According to Khun Thiraphong Chansiri, president of TUF, the overall performance for the quarter approached the sales growth target.
While normally the first quarter is typically the slowest of the year, this time TUF regardless generated excellent sales and net profit, almost the same as those figures reported in last year's strongest quarter, which was Q3, with sales of USD 831 million. Sturdy sales growth was achieved across all product lines this Q1, while the gross profit margin rose to 17.2 per cent versus the 14.8 per cent reached in the first quarter of 2011.
A fire incident took place at one of TUF’s shrimp-processing plants in Samut Sakhon province, and the firm consequently relocated its workers to its other shrimp-processing facility in Songkhla province. Shrimp production has since resumed to a normal level.
The company said it is confident that further profitable growth is well on track. It remains ready to reach its USD 5 billion annual sales target by 2015.
For the first quarter of 2012, tuna products made up the largest share in the company's product portfolio at 50 per cent, followed by frozen shrimp (16 per cent), canned pet food (7 per cent), products for the domestic market (8 per cent), canned seafood (5 per cent), frozen salmon (5 per cent), shrimp feeds (4 per cent), canned sardines and mackerel (5 per cent) and frozen cephalopods (1 per cent).
TUF’s primary export markets are the US (36 per cent), European Union (30 per cent), Japan (9 per cent) and the domestic market (10 per cent).
This year, TUF will roll out more aggressive marketing strategies in its home country, covering branding initiatives that will involve both the corporate brand and the product brand. The goal is to enhance brand recognition among Thai consumers.
So far, the company's logo has been modified to convey a more international image to the public and the first commercial advertisement, which shows that TUF is the owner of a host of well-recognized global tuna brands, including Chicken of the Sea, has already aired on local TV channels.
- TUF on target for 2012
By Natalia Real