The Bangkok-headquartered Thai Union Group has reported a normalized net profit of THB 5,218 million in fiscal year 2019 (FY2019), an increase of 0.5 percent year-on-year. Net profit after special items was THB 3,816 million, while a 6.4% increase in gross profit 6.4 percent gross profit amounted to THB 20.1 billion.
The company, which is a major producer of frozen shrimp and fish and is regarded as the world’s largest packer of shelf-stable tuna products made largely from frozen raw materials, continued to improve its operating performance as FY2019 EBITDA reached a record high of THB 12 billion — an increase of 9.2 percent year-on-year — driven largely by improved profitability and consistently improved contributions from investment and affiliates. Consolidated sales decreased by 5.3 percent to THB 126.27 billion, mainly as a result of the Thai baht’s appreciation during the period under review.
In 2019, sales volumes grew 1.9 percent over the previous comparable period. This was chiefly due to frozen and chilled seafood products and related business, which increased 12.8 percent year-on-year, as well as a 3.2 percent increase in sales from the PetCare and value-added products business units.
North America Top Market
Operating profit for FY2019 improved 20.8 percent year-on-year, reaching THB 5,642 million. Geographically, sales in North America continued to play an important role in driving revenue for Thai Union, accounting for 41 percent of total sales, while Europe contributed 28 percent of sales. The Thai market grew to 12 percent of total sales, with Asia-Pacific, the Middle East, Africa and South America contributing 19 percent.
“We continue to focus on profitability throughout our core operations, new value-enhancing businesses and our existing strategic investments,” said CEO Thiraphong Chansiri. “As this set of results closes out the last decade, we can be very proud of the work we have done and the progress we have made throughout the last 10 years. As we enter the new decade, I am confident that we will continue to lead on sustainability and innovation investment. We are also, developing products that respond to the demands of customers and consumers globally through delivering against a focus on Healthy Living and Healthy Oceans.
In FY2019, Thai Union’s net debt to equity ratio decreased to 1.07 times, down from 1.40 times in 2018. This was due to the issuance of subordinated perpetual debentures of THB 6 billion in the last quarter of 2019, and further debt reduction from THB 3 billion free cash flow.
The company will pay a 2019 dividend of THB 0.47 per share, an increase of 17.5 percent compared to 2018. The 2019 interim dividend was THB 0.25.
Humanitarian Assistance to Wuhan
Meanwhile, as the spreading novel coronavirus (Covid-19) that originated in Wuhan, China continues to wreak havoc in that country and the world (China’s National Health Commission put the official death toll at 1,863 and number of infections at 72,355 in the PRC on February 18), Thai Union has donated food assistance to help those in need. Its subsidiary in China has dispatched more than 52,000 cans of tuna fish to feed patients and medical personnel at hospitals in Wuhan City. The truck pictured above is being unloaded at the Tongi Hospital.
“As a global food company, we see part of our responsibility to provide humanitarian assistance through Tuna Aid to help support people living and working people in regions where we operate. Covid-19 is challenging not only in China but around the world, and we all need to work together to overcome it,” said Dr. Darian McBain, Thai Union Group’s global director of corporate affairs and sustainability.