Seafood company enjoys robust profit rise

By Chloe Ryan

- Last updated on GMT

Thai Union hopes to hit their $8bn revenue target by 2020
Thai Union hopes to hit their $8bn revenue target by 2020
International seafood firm Thai Union has recorded double digit profit growth for the third quarter of the year, buoyed by its acquisition of three rival firms, MerAlliance, King Oscar and Orion.

Net profit climbed 15% in the third quarter of 2015, compared to the second, reaching THB1.63 billion. Gross margins rose to 17.3%, a four year high for Thai Union. Sales increased 7.2% compared to the same period last year, from THB30.4bn to THB32.6bn.

The company said it continued to grow "despite fierce competition and constant challenges in the global market"​.

In the third quarter, the company generated 37% of total sales from tuna; 29% from shrimp and related businesses; 9% from salmon; 7% from pet food; 6% from sardines and mackerel; and 13% from value-added and other products. The shrimp business significantly grew in this quarter, as a result of contributions from Orion Seafood’s lobster business.
Food innovation key to growth

The international company made 42% of total sales from the USA; 30% from Europe; 9% from the domestic Thai market; 7% from Japan; and 13% from other countries. 

In the first nine months of this year, the company recorded THB91.9bn in sales. This is an increase of 3.6% from the same period of last year. Its nine-month net profit was THB4.5bn, which is up 3.5% from the first nine months a year before. In the corresponding period, gross margin edged up to 16.1%.

Thiraphong Chansiri, president and chief executive of Thai Union, said he was very pleased with the third-quarter performance. "We remain focused on our strategy, which emphasises organic growth by adding value to products and developing food innovation. We are also looking at possibilities for market penetration, particularly into emerging markets, and food services. Our goal is to achieve a US$8bn revenue target by 2020, with a clear vision of being the world’s most trusted seafood leader, by caring for our resources and promoting the health of the oceans, while remaining fully committed to ensuring the safeguarding of our people and those employed in the fishing industry. We will continue to move forward sustainably as an exemplary responsible global corporate citizen​."

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