The latest acquisitions of MerAlliance, King Oscar and Orion served to elevate Thai Union Group’s third quarter revenue at a “satisfactory” rate, reported the seafood company juggernaut.
Sales increased by 7.2 percent in Q3, climbing from THB 30.4 billion (USD 845.7 million; EUR 792 million) during the same period last year, to THB 32.6 billion (USD 906.9 million; EUR 849 million) now. The shrimp sector in particular provided strong gains for the company, and was further fortified by the addition of MerAlliance’s lobster business, noted Thai Union.
Improvement in operating margin was noted by the company – operating margin increased to 6.6 percent of sales from 6.4 percent of sales in Q3 for 2014. What’s more, net income increased to 5.4 percent to THB 4.9 billion (USD 136 million; EUR 127 million). Net profits, meanwhile, climbed to 15 percent year-on-year in Q3 to THB 1.63 billion (USD 45.3 million; EUR 42 million) and gross margins also rose to 17.3 percent.
“We remain focused on our strategy which emphasizes organic growth by adding value to products and developing food innovation. We are also looking at possibilities for market penetration, particularly into emerging markets, and food services. Our goal is to achieve USD 8 billion revenue target by 2020, with a clear vision of being the world’s most trusted seafood leader, by caring for our resources and promoting the health of the oceans, while remaining fully committed to ensuring the safeguarding of our people and those employed in the fishing industry,” said Thai Union president and CEO Thiraphong Chansiri.
A breakdown of sales by species was relayed as follows: 37 percent of sales from tuna; 29 percent courtesy of shrimp and prawn-related ventures; 9 percent thanks to salmon, 7 percent from pet food; 6 percent from sardines and mackerel; and 13 percent due to value-added products.
Overall, 42 percent of total sales were from the United States, 30 percent were from Europe, 9 percent came courtesy of the domestic market, 7 percent thanks to Japan and 13 percent from other countries.
