Thai Union Group posted strong profits for the period ending on 31 March, 2021, boosted by increased revenue on exports to the U.S.
Thai Union reported just over THB 1.8 billion (USD 57.9 million, EUR 47.6 million) in profit for the period, compared to THB 1 billion (USD 32 million, EUR 26.4 million) in 2020 – an increase of 80 percent. Overall, the company’s gross profit for the period was THB 5.5 billion (USD 177 million, EUR 145 million) compared to THB 5 billion (USD 160 million, EUR 132 million) in 2020.
Thai Union attributed the strong gross profit to the “recovery of frozen and chilled seafood,” along with an increase in demand for PetCare and its value-added business.
The company’s ambient seafood segment saw gross profit of THB 2.7 billion (USD 86.9 million, EUR 71.4 million), while its frozen and chilled seafood segment saw gross profits of THB 1.3 billion (USD 41.8 million, EUR 34.4 million).
The company attributed the frozen and chilled seafood profits to a “substantial recovery in foodservice businesses, particularly in the U.S., as well as export products.”
The recovery is shown by the company’s revenue from the U.S., which increased in 2021 compared to 2020, with Thai Union earning THB 13.3 billion (USD 428 million, EUR 352 million) in 2021 compared to THB 12.8 billion (USD 412 million, EUR 338 million) in 2020.
However, those gains were countered by drops in revenue from Europe and Thailand: Revenue from Europe decreased to THB 8.3 billion (USD 267 million, EUR 219 million) from THB 9.4 billion (USD 302 million, EUR 248 million) in 2020, while revenue from Thailand decreased to THB 3.6 billion (USD 115 million, EUR 95 million) from THB 3.4 billion (USD 109 million, EUR 90 million). Overall, revenue from external customers fell slightly, by just THB 21 million (USD 676,000, EUR 556,000).
The strong first-quarter performance comes on the heels of the company posting record profits in 2020 despite losses related to Red Lobster, which the company acquired in August 2020.
The company said that “stringent measures and prompt action on COVID-19” allowed all of its plants to remain open and operational at “near normal capacity.” However, logistics “continues to be a key challenge.”
Photo courtesy of Thai Union
