TUF’s Net Profit Hits Record High in 3Q14 Since Its Inception

          - Best ever net profit in 3Q14 at THB 1,922 million, 91.4% growth compared to 3Q13 and 26.3% compared to 2Q14
          - Excellent cost management generates exceptional margins
          - EBITDA increases 34.2 % comparing to the same period last year
          - 3Q14 Earnings per Share rises 92% to THB 1.67
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          Thai Union Frozen Products PCL. (TUF) reported its outstanding financial results for the third quarter of 2014 with the net profit of THB 1,922 million showing an exceptional growth of 91.4 percent from a year ago. Whilst the net profit for the first nine months was revealed at THB 4,393 million, up 115.6% year-on-year. The net profit jumped mainly due to gross profit margin expansion as a result of well-managed operating cost, reversal of accrued interest expenses booked in the previous quarter, and the turnaround of the US pet food business.
          Whilst first nine months 2014’s group sales contributed THB 88,630 million, up 8.1 percent comparing to the same period last year. However the group’s profitability increased sharply in terms of EBIDA - the first 9 months rose to THB 8,709 million or 56.5 percent higher compared to THB 5,612 million in 9M13. 
          The strong third quarter earnings are largely driven by several key operating factors; namely, outstanding performance of branded tuna business, good cost management and reversal of accrued interest expenses from Euro Convertible Bond (ECB) conversion in October 2014.
          Furthermore, the turnaround of the pet food business in the US has also contributed to this strong performance. Despite the challenges of global shrimp shortage caused by EMS outbreak, shrimp business continued to be profitable. 
          TUF Group’s revenues breakdown by markets in 3Q14 is as follows: the U.S. (43%), Europe (31%), Japan (7%), Domestic (7%), and other markets including Africa, Australia, Asia excluding Japan, Middle East, Canada and South America (12%). Sales of six major strategic categories of TUF for the past nine months remained relatively stable with encouraging growth in the value-added product and the pet food. Overall sales growth is satisfactory with tuna business shares at 47%, shrimp and related business at 24%, pet food at 7%, sardine & Mackerel at 5%, salmon at 4% and value-added & other products at 13%. 
          Mr. Thiraphong Chansiri, President and CEO of Thai Union Frozen Products PCL (TUF) continued, “We are very excited to set the new milestone as our quarterly net profit skyrocketed to the highest ever level at THB 1,922 million – that is 91.4% increase from a year ago.
          We will continue to enhance our capability in operation management, strategic sourcing and financial management to grow our business in a sustainable manner. Our ambition to grow and the recent acquisitions will ensure we are on track to hit our USD 8 billion sales target by 2020.” 
          In addition, the Board of Directors of the company also approved a stock split with an objective of making the TUF stock more accessible to retail investors who may help increase the share trading liquidity. However, this exercise is subject to the final approval at the next shareholders meeting in December.