TUF Profits Up 95% - Half Of Business Is Tuna

(Bangkok Post) Thai Union Frozen Products Plc (TUF), the world’s largest canned tuna producer, posted a record quarterly net profit of 1.46 billion baht, up 95% year-on-year, on strong sales growth.

Quarterly sales in US dollar terms were USD 822 million, up 11% from a year ago. Sales in Thai baht terms also grew by 11% from 22.70 billion baht in the first quarter last year to 25.30 billion baht.

Total revenues for the quarter amounted to 25.67 billion baht, up 12% from the first quarter of 2011, said president Thiraphong Chansiri.

The strong sales growth was seen across all product lines while the gross profit margin rose to 17.2% from 14.8% in last year’s first quarter.

Tuna products make up the largest share in the company’s product portfolio (50%), followed by frozen shrimp (16%), canned pet food (7%), products for domestic market (8%), canned seafood (5%), frozen salmon (5%), shrimp feed (4%), canned sardines and mackerel (5%) and frozen cephalopod (1%). The main export markets are the US (36%), the EU (30%) and Japan (9%).

“The strategic alliance should provide synergies to the seafood businesses of both companies. Concurrently, more efficient joint raw material sourcing should also become possible, thereby potentially saving costs on raw materials and increasing competitiveness in the long term,” he said.

Shares of TUF closed on the SET at 73.25 baht today, up 2.45% from previous day - in trade worth 110.13 million baht – the stock showing a 58.01 % return over the last year.


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