Seafood company Thai Union has reported that sales rose 1.6% to THB 136.53 billion (€3.51 billion) in 2017, with net profit surging 14.6% to a record THB 6.02 billion (€154.7 million).
The group, which produces brands such as Chicken of the Sea and John West, says that its business was negatively affected by rising raw material prices during the year, however, these were offset by 'prudent cost control' and strong foreign exchange gains.
“Despite market volatility and higher raw material prices, our profitability remained resilient in 2017,” said Thiraphong Chansiri, CEO of Thai Union.
“Raw material price pressures are relaxing as tuna prices started to decline since the fourth quarter of 2017.”
2017 Performance
In 2017, Thai Union's North America business continued to play 'an important role', accounting for 40% of the company's total sales, while Europe contributed 32%. The group's domestic market of Thailand saw its sales share increase to 10%, and Japan contributed 6%.
The company says that sales contribution from major markets marginally shifted in favour of domestic and emerging markets last year, partly due to strong penetration efforts, particularly in China.
The contribution from Thai Union brands rose slightly to 42%, with the rest came from private-label sales.
Looking ahead, the company says that continuing its sustainability efforts will be a main focus of the business.
“We are also working across industries because the challenges faced by the seafood industry, such as human rights and safe migration, are not unique to seafood,” said Chansiri.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
