Seafood producer Thai Union Group has reported a 5.9% year-on-year growth in sales to THB 31.1 billion (€888.28 million) in the first quarter of its financial year.
The performance, which the company described as its ‘best first-quarter sales in three years’, was driven by the stockpiling of shelf-stable products around the world in light of the COVID-19 pandemic.
As a result, Thai Union’s ambient food business saw sales increase by 16.2% year-on-year, to THB 15.6 billion (€450 million), and a 24.5% jump in sales volume to 99,599 tonnes.
The company reported a 49.9% jump in operating profit to THB 1.5 billion (€43 million), reflecting the company’s efforts on cost controls and profitability.
However, the company’s net profit dropped 20.2% year-on-year, due to the impact of COVID-19 on strategic investments and foreign exchange loss.
Divisional Performance
The sales of PetCare, value-added and other divisions increased by 3.3% to THB 4.5 billion (€130 million), driven by the performance of higher-margin products.
The company’s frozen, chilled seafood and related business witnessed a 5.1% in sales to THB 10.9 billion (€312.55 million) during the quarter, mainly due to the impact of COVID-19 on hospitality and F&B channels.
During the quarter, Thai Union generated 43% of its total sales in North America, followed by Europe at 30%, Thai domestic market at 11%, and other markets at 16%.
'Focus On Health And Safety'
CEO of Thai Union Group PCL, Thiraphong Chansiri, commented, “The world changed dramatically in the first quarter with the impact of COVID-19 felt all around the world.
“Throughout this pandemic, Thai Union has continued to focus on the health and safety of our people and our business operations so that we can continue to deliver our products to our customers and consumers around the world in confidence and safety.”
Humanitarian Efforts
In France, Thai Union’s Petit Navire factory donated 24,000 masks to hospitals while MerAlliance donated 5,000 hygiene caps, 1,000 disposable lab coats, and 38,000 protection aprons to support the hospital in Quimper.
In the UK, John West donated 12,000 cans of Red Salmon to Age UK to help the elderly.
Thai Union China donated more than 52,000 cans of King Oscar tuna to hospitals in Wuhan.
In Thailand, the company delivered more than 150,000 cans of tuna, sardine and mackerel products to hospitals and affected communities.
In the US, the company has donated more than 500,000 servings of canned tuna, salmon and other products to hunger relief organisations for vulnerable populations through its brand, Chicken of the Sea.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
