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Frozen and Chilled Seafood Sales Power Q3 Results for Thai Union

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The Thai Union Group has reported solid growth during the third quarter of 2021 on the back of strong sales and continued business diversification. This comes as more countries gradually stabilize and continue to address and better manage the coronavirus (SARS-CoV-2) health crisis, evidenced by welcomed signs of greater normalcy with people returning to offices, restaurants and outdoor activities.

Sales during the July-September period came in at THB 35.5 billion, an increase of 2.2 percent compared to the same three months last year, with the Bangkok-headquartered seafood company’s gross profit growing 1 percent to THB 6.4 billion. Healthy net profit was THB 1.9 billion in Q3, though down by 5.8 percent year-on-year.

Key markets, including Europe and North America, continued to emerge strongly from government-imposed Covid-19 lockdowns and restrictions during the quarter. In response, consumers cut back on stockpiling shelf-stable products such as canned seafood, resulting in a decline in Thai Union’s ambient products business, with sales down 8 percent year-on-year to THB 15 billion.

However, with the negative impact of the pandemic easing across the globe and more restaurants reopening, especially in the key United States market, Thai Union’s frozen and chilled seafood business sales grew 11 percent to THB 14.8 billion. The PetCare, value-added and other products business segment showed strong sales growth at THB 5.7 billion, up 11.4 percent year-on-year.

Thai Union’s Q3 2021 performance was also significantly stronger than during Q3 2019 – the most recent third quarter not impacted by the coronavirus  health crisis – when the company posted sales of THB 31.8 billion and gross profit of THB 5.1 billion.

During the first three quarters of 2021, the seafood producer and marketer rang up total sales of THB 102.5 billion, an increase of 3.6 percent year-on-year, with net profit 27 percent higher at THB 6 billion year-on-year.

“Thai Union delivered a healthy set of financial results for the first nine months of 2021, with our core businesses delivering another strong and stable performance. Consumers showed strong trust in our healthy and nutritious products as Covid-19 swept across the world, and I’m proud that they continue to demonstrate their faith in our brands as the pandemic eases. We continue to enhance our portfolio with higher-margin businesses that align with our commitment to ensuring ‘Healthy Living, Healthy Oceans,’” said CEO Thiraphong Chansiri.

Thai Union’s ongoing focus on diversifying business activities was a strong factor in its continued growth performance. In September, the company announced a 10 percent strategic investment of about THB 3 billion in R&B Food Supply (RBF), Thailand’s leading food ingredients company specializing in flavors, colors and coatings. RBF’s ingredients, such as natural flavors and hemp extracts, can enhance both Thai Union’s core offerings and newer products, including in alternative protein and pet care items. 

Also in September, a memo of understanding was signed to launch a joint venture with Starflex PCL, an industry leader in manufacturing and distributing flexible packaging. This collaboration will be a crucial part in the company’s commitment that 100 percent of its branded packaging will be reusable, recyclable or compostable by 2025.