Thai Union Group has posted a 9.3% year-on-year growth in net sales to THB34.78 billion (€960 million) in the third quarter of its financial year, ended September 2020.
The company attributed its performance to an increased demand for long-shelf-life items and pet food, as consumers spent more time at home due to the pandemic.
Net profit jumped 49.7% to THB2.06 billion (€57 million), while gross profit increased 24.6% to THB6.33 billion (€170 million) during the quarter.
Thiraphong Chansiri, CEO of Thai Union, said, “These strong results reflect our strategies to improve business efficiency and productivity, as well as changing consumer demand because of the global pandemic."
Divisional Performance
Thai Union’s ambient seafood business reported sales growth of THB16.26 billion (€450 million), while frozen food and related businesses saw sales rise 4.7% to THB13.37 billion (€370 million).
Pet care and value-added business increased sales by 12% to THB5.15 billion (€140 million).
Chansiri commented, “Over the past few years, we have been investing in improving our core business and high-margined businesses including ingredients and food-tech innovations.
"While COVID-19 is still a challenge to all businesses, we continue to work hard to ensure we can continue delivering quality products to our customers around the world.”
Other Highlights
The John West parent announced plans to invest in four new food-tech startups from the SPACE-F programme, which was co-founded by the company in 2019.
The companies include Manna Foods, Alchemy Foodtech and HydroNeo, and the Singapore-based agritech firm VisVires New Protein.
Chansiri said, “Our vision is to help build an ecosystem that is based on innovative new technologies. Thai Union has already piloted its plant-based seafood products in Thai markets, in response to the increasing consumers' demand for more sustainable, lower environmental impacted protein.”
The company won the SDG Impact Award for its global initiatives to deliver against UN SDGs and industry-leading standards at the Responsible Business Awards 2020 in the UK, and was acknowledged in the FTSE4Good Emerging Index for the fifth consecutive year.
Also, CEO Chansiri was recognised as the most influential executive in the seafood industry by Intrafish.
Outlook
The company said that it aims to focus on preserving cash, capturing opportunities and managing daily operations, with health and safety as its priority.
“We continue to work hard to ensure business continuity and maintain production capacity in order to continue delivering the safe and quality products that consumers around the world know and trust,” Chansiri added.
© 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.
