Seafood giant Thai Union Group PCL has reported 10.3% year-on-year growth in sales, to THB 155.6 billion (€4.2 billion), in its full year 2022.
The company attributed this growth to a solid performance in its pet care and ambient seafood businesses.
Gross profit for the full financial year grew 5.8% to THB 27.2 billion (€740 million), while net profit dropped by 10.9% to THB 7.1 billion (€190 million).
The John West maker delivered a half-year dividend of THB 0.44 per share, bringing its full-year dividend to THB 0.84 per share.
'Strong Performance And Record Sales'
Thiraphong Chansiri, CEO of Thai Union stated, "Amidst unforeseen global economic challenges such as high inflation and volatile foreign exchange, Thai Union was able to deliver a strong performance and record sales. Our core businesses remain a key focus for Thai Union, but we continue to further diversify our portfolio of products to appeal to new customers across Asia, Europe and North America.
"We also continue to develop value-enhancing businesses across our ingredients, supplements and alternative protein units, where we are unlocking new and innovative products that will be essential to our future growth."
Sales in the US and Canada accounted for 44% of total revenue, followed by 26% in Europe, 11% in Thailand and 19% from the rest of the world.
Read More: Pet Food Firm i-Tail Cites Premiumisation As Key Category Driver
Growth Drivers
The company saw ambient seafood sales growing by 12.8% year-on-year in 2022 due to higher selling prices and demand, particularly across Asia and the US, as it launched new products.
The division accounted for 43% of the total revenue generated by the company, followed by frozen and chilled seafood with 36%.
The pet care segment reported year-on-year sales growth of 48% to THB 21.7 billion (€590 million) on the back of 'robust demand' and higher selling prices.
In 2022, the i-Tail Corporation Public Company Limited (ITC), a subsidiary of Thai Union, was listed on the Stock Exchange of Thailand, in what the company described as 'the largest ever initial public offering in the food and beverage category'.
The spinoff of the pet care business was the key driver in Thai Union’s net-debt-to-equity ratio improving to 0.54x at the end of 2022, compared to 0.99x in 2021, the company noted.
Outlook
According to Chansiri, in 2023 inflation will continue to pose challenges across all the markets where the company operates.
"However, I am confident that management’s focus on our long-term strategies, fiscal discipline and business diversification will ensure we maintain strong growth momentum well into the future," he added. "Thai Union is aiming for 2023 sales growth of around 5-6% year-on-year and will scale up capital expenditure to THB 6-6.5 billion."
© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Dayeeta Das Click subscribe to sign up to ESM: European Supermarket Magazine.
