Thai Union posts record sales following Chez Nous acquisition, Red Lobster investment
Thai Union Group has reported another consecutive quarter of record figures, having earned THB 35.1 billion (USD 1 billion, EUR 911 million) in consolidated sales for the third quarter of 2016, a 7.7 percent on-year increase.
Gross profits were down by 12.4 percent, reported the company, with the gross profit margin coming in at 14.1 percent compared to the 17.3 percent seen in the same quarter in 2015.
“Continued high salmon raw material prices and higher than expected tuna prices contributed to the weaker margin, while moderate foreign exchange losses of THB 30 million (USD 857,792, EUR 781,530) were recorded,” said Thai Union.
Sales in the United States have contributed significantly to Thai Union’s revenues during the first nine months of 2016, accounting for 39 percent of total sales for the year to-date. Meanwhile, Thailand’s domestic market accounted for 8 percent of total sales for the company, with Europe contributed 33 percent of sales and Japan’s sales representing 6 percent of total sales to-date.
“This quarter clearly shows that demand for our products is strong despite a challenging market for raw materials and continued difficult economic conditions in various markets around the world. We were able to deliver a very solid bottom line despite tighter market conditions,” said Thiraphong Chansiri, CEO of Thai Union Group, in a news release.
Thai Union brands have stayed stable through 2016’s third quarter, with sales contribution from brands coming in at 43 percent to-date. Sales for the company’s frozen and chilled seafood business rose to THB 15.1 billion (USD 431 million, EUR 392 million), a 14.7 percent jump when compared to the same timeframe last year, and a direct result of the company’s Chez Nous acquisition, improved domestic shrimp exports and the consolidation of Rügen Fisch in Germany, Thai Union said.
Thai Union’s strategic USD 575 million (EUR 516.3 million) investment in Red Lobster during Q3 in October is also trending well for the company, with Red Lobster management and employees and business analysts applauding the move. Additionally, Thai Union acquired a minority interest of 18 percent from its subsidiary Chicken of the Sea Frozen Foods, and thus, Thai Union now holds 100 percent of the company.