Acquisitions boost TUF 2014 results

Thai Union Frozen Products (TUF) is crediting its acquisitions last year of Norway’s King Oscar Co. and France’s MerAlliance with the company’s reported increase in sales and net profits in 2014, but it’s too soon to tell what impact the company’s purchase of canned tuna company Bumble Bee Foods will have.

TUF went on a buying spree last year, purchasing the Norwegian company known for its canned sardines, along with the French seafood smoker in November, and as a result, TUF’s fourth quarter and annual report shows 2014 total sales of THB 121.4 billion (USD 3.8 billion, EUR 3.3 billion), an increase of 7.6 percent over 2013. The company reported net profits were also up, recording THB 5.1 billion (USD 157.8 million, EUR 140.6 million) in 2014, a 78.5 percent increase over 2013.

“Our 2014 result demonstrates continued accelerated growth from our branded product portfolios and operational cost management initiatives,” said Thirapong Chansiri, TUF’s president and CEO. “These activities remain a priority as well as leverage sourcing activity, operating and marketing synergies with the newly acquired companies, e.g., MerAlliance and King Oscar which we expect to see further results over time.”

TUF announced its intent to purchase Bumble Bee in December, but is waiting until it gets the blessing of U.S. regulators before completing the acquisition. Despite the purchase, estimated to cost USD 1.5 billion (EUR 1.3 billion), the company’s outlook for 2015 remains positive, with a sales target of USD 5 billion (EUR 4.5 billion).

"After our M&A driven expansion in the last quarter, we will focus in 2015 on operational excellence, organic growth to achieve two times GDP growth and on integrating the acquired businesses to leverage synergies and strengthen our underlying operational performance,” Chansiri said.