Thai Union has reported ‘solid growth’ in the third quarter of its financial year, backed by solid sales and continued business diversification.
Sales increased 2.2% year-on-year to THB35.5 billion in the July-September quarter, while gross profit increased by 1% to THB6.4 billion.
Key markets, including Europe and North America, continued to emerge strongly from COVID-19-enforced lockdowns and restrictions during the quarter, the John West parent noted.
Its ambient seafood business reported an 8% year-on-year decline in sales, to THB 15 billion, as customers cut back on stockpiling shelf-stable products such as canned seafood.
Elsewhere, Thai Union’s frozen and chilled seafood business saw sales up 11% to THB 14.8 billion, as more restaurants reopened, especially in its key market – the US.
The company added that its performance was also significantly stronger than the same period in 2019, when it generated sales of THB 31.8 billion and gross profit of THB 5.1 billion.
Nine-Month Report
Thai Union posted total sales of THB 102.5 billion for the nine months to end-September 2021, registering an increase of 3.6% year-on-year, with net profit 27% higher at THB 6 billion year-on-year.
Commenting on the company’s performance, the CEO of Thai Union Group, Thiraphong Chansiri, said, “Thai Union delivered a healthy set of financial results for the 9M21, with our core businesses delivering another strong and stable performance.
“Consumers showed strong trust in our healthy and nutritious products as COVID-19 swept across the world, and I’m proud that they continue to demonstrate their faith in our brands as the pandemic eases. We continue to enhance our portfolio with higher-margin businesses that align with our commitment to ensuring ‘Healthy Living, Healthy Oceans.”
Business Diversification
In September, Thai Union announced a 10% strategic investment of about THB 3 billion in R&B Food Supply PCL (RBF), Thailand’s leading food ingredients company specialising in flavours, colours and coating.
In the same month, it signed an MOU to launch a new joint venture with Starflex PCL, an industry leader in manufacturing and distributing high-quality flexible packaging.
Last week, it announced that its Corporate Venture Capital (CVC) Fund has invested in Orgafeed, a producer of insect-based pet treats.
Other Highlights
Thai Union issued a seven-year sustainability linked bond in Thailand as part of its Blue Finance strategy.
“I am proud that Thai Union continues to maintain a healthy financial position and embrace innovation like our Blue Finance strategy. We have a sustainability-linked financing target of 50% in 2022,” Chansiri added.
The company continued to provide humanitarian assistance to local communities while the impact from COVID-19 continued to ease in the third quarter.
Between April and August 2021, it donated more than 326,000 servings of food in Thailand to government agencies, non-government organizations, hospitals and foundations.
Globally, the Thai Union Cares programme has donated more than 3.3 million servings, along with more than 78,000 cans of Bellotta and Marvo cat and dog food and over 4,000 kilograms of hard dog food to animal charities, pet shelters, community organizations and animal volunteers.
