TUF maintains sober Q2 outlook
Thai Union Frozen Products Plc (TUF), the world's largest tuna company, sees little chance its bottom line will recover in the second quarter, citing high raw material costs and the strong baht.
Deputy general manager Wai Yat Paco Lee said TUF expects several challenges in the market this quarter with risks hampering higher sales and production.
However, he is more optimistic about the third and fourth quarters concerning financial results and export targets.
"Higher raw material costs and the continuing shrimp epidemic were a big part of the drop in sales and production, leading the company to increase product prices in the first quarter," he told a briefing at the Stock Exchange of Thailand yesterday.
TUF has processing plants in Thailand, Indonesia, Vietnam and the United States. Its brands include Chicken of the Sea and John West Foods.
Genetic problems in baby shrimp, widespread disease outbreak, and poor farm management have caused early mortality syndrome (EMS) in shrimp, Lee said.
To cope with the lower supply, TUF plans to import 20-30 percent of its shrimp from India and Ecuador.