- Driven by best performance from the Group’s key product categories
- Strong organic growth with a promising improvement quarter over quarter
- 1H14 EBITDA increases 73% comparing to the same period last year
- 2Q14 Earnings per Share rises 329 % to THB 1.33
Thai Union Frozen Products PCL. (TUF) released its encouraging financial results for the second quarter of 2014 with the net profit of THB 1,522 million showing an impressive growth of 324 percent from a year ago. Whilst the net profit for the first six months was revealed at THB 2,471million, up 139% year-on-year. The net profit jumped mainly due to gross profit margin expansion to 15.5% from 11.7% in 1H13, contributed by a recovery of gross profit margin of tuna, frozen shrimp and pet food business.
The group’s overall strong performance in 2Q14 with sales of THB 30,258 million or 7.6 percent increase compared to THB 28,119 million in 2Q13, whilst 1H14’s group sales contributed to THB 58,207 million, up 10.7 percent comparing to the same period last year but in USD term, sales inched up by 2.1 percent.
The second quarter positive earnings are largely driven by several key operating factors such as strong overseas branded tuna business where sales increased by 18.9% year-on-year in 1H14, sustainable shrimp business despite the challenges of global shrimp shortage caused by EMS outbreak, and an escalating growth in the value-added and other products category.
In addition to the aforementioned earning drivers and an overall consistent growth in all product categories, Thai Baht depreciation also helped led to margin expansion which resulted in higher net profits in particular.
TUF’s six strategic categories for the first half of the year remained relatively steady. However, they continued to offer satisfying growth with tuna business shares at 49%, shrimp and related business at 23%, pet food at 7%, sardine & Mackerel at 6%, salmon at 4% and value-added & other products at 11%.
1H14 EBITDA upsurges 73% from THB 3,194 million to THB 5,538 million whilst earnings per share increases 139% to THB 2.15, as opposed to THB 0.90 per share for last year’s period for the first six months. In the meantime, 2Q14 earnings per share was reported at THB1.33 growing 329% from THB 0.31 per share for 2Q13.
Furthermore, the Group’s revenues breakdown by markets incorporates the U.S. (41%), Europe (33%), Japan (7%), Domestic (7%), Africa (3%), Australia (3%), Asia (excluding Japan 3%), Middle East (2%), Canada (1%) and South America 1%. Correspondingly, the U.S market showed the strongest growth of more than 20% year-on-year, followed by Europe’s positive development of more than 17% comparing to same period last year, owing to stronger sales of the U.S. frozen shrimp trading operations and robust operating results of the Europe’s operations comparing to last year.
The Group’s growth strategy for branded business to geographically expand its leading brands has been realized with recent market penetrations into South America, Canada and Africa. 2014’s first-six-month period successfully boosted up branded business sales which accounted for 43% of the total group’s revenues in comparison to 41% last year.
“We are more than pleased with our operating results for the second quarter of 2014”, said Mr. Thiraphong Chansiri, President and CEO of Thai Union Frozen Products PCL. (TUF), the world’s seafood expert and the world’s number one canned tuna processor.
“Production efficiency and raw materials sourcing diversification have always been and still continued to be our strengths for our group’s accomplishment. To build a firmer foundation for sustainable success and competitive growth in this highly hard-hitting industry, I believe, we need to be even more ambitious to reach our targets - to be a good corporate citizen on top of being successful and innovative business operators. I can see a satisfying recovery for this quarter in both business viability and operational sustainability. However, we will continue to work tirelessly putting efforts in being a part of the positive contribution to the people, community and society as a whole.” Mr. Chansiri concluded.
The Board of Directors resolved to approve an allocation of net profit gained from the operating results during the first half of the year at THB1.2 per share with the ex-dividend date on August 25th, 2014 and the payment date on September 10th, 2014.
- Strong organic growth with a promising improvement quarter over quarter
- 1H14 EBITDA increases 73% comparing to the same period last year
- 2Q14 Earnings per Share rises 329 % to THB 1.33
Thai Union Frozen Products PCL. (TUF) released its encouraging financial results for the second quarter of 2014 with the net profit of THB 1,522 million showing an impressive growth of 324 percent from a year ago. Whilst the net profit for the first six months was revealed at THB 2,471million, up 139% year-on-year. The net profit jumped mainly due to gross profit margin expansion to 15.5% from 11.7% in 1H13, contributed by a recovery of gross profit margin of tuna, frozen shrimp and pet food business.
The group’s overall strong performance in 2Q14 with sales of THB 30,258 million or 7.6 percent increase compared to THB 28,119 million in 2Q13, whilst 1H14’s group sales contributed to THB 58,207 million, up 10.7 percent comparing to the same period last year but in USD term, sales inched up by 2.1 percent.
The second quarter positive earnings are largely driven by several key operating factors such as strong overseas branded tuna business where sales increased by 18.9% year-on-year in 1H14, sustainable shrimp business despite the challenges of global shrimp shortage caused by EMS outbreak, and an escalating growth in the value-added and other products category.
In addition to the aforementioned earning drivers and an overall consistent growth in all product categories, Thai Baht depreciation also helped led to margin expansion which resulted in higher net profits in particular.
TUF’s six strategic categories for the first half of the year remained relatively steady. However, they continued to offer satisfying growth with tuna business shares at 49%, shrimp and related business at 23%, pet food at 7%, sardine & Mackerel at 6%, salmon at 4% and value-added & other products at 11%.
1H14 EBITDA upsurges 73% from THB 3,194 million to THB 5,538 million whilst earnings per share increases 139% to THB 2.15, as opposed to THB 0.90 per share for last year’s period for the first six months. In the meantime, 2Q14 earnings per share was reported at THB1.33 growing 329% from THB 0.31 per share for 2Q13.
Furthermore, the Group’s revenues breakdown by markets incorporates the U.S. (41%), Europe (33%), Japan (7%), Domestic (7%), Africa (3%), Australia (3%), Asia (excluding Japan 3%), Middle East (2%), Canada (1%) and South America 1%. Correspondingly, the U.S market showed the strongest growth of more than 20% year-on-year, followed by Europe’s positive development of more than 17% comparing to same period last year, owing to stronger sales of the U.S. frozen shrimp trading operations and robust operating results of the Europe’s operations comparing to last year.
The Group’s growth strategy for branded business to geographically expand its leading brands has been realized with recent market penetrations into South America, Canada and Africa. 2014’s first-six-month period successfully boosted up branded business sales which accounted for 43% of the total group’s revenues in comparison to 41% last year.
“We are more than pleased with our operating results for the second quarter of 2014”, said Mr. Thiraphong Chansiri, President and CEO of Thai Union Frozen Products PCL. (TUF), the world’s seafood expert and the world’s number one canned tuna processor.
“Production efficiency and raw materials sourcing diversification have always been and still continued to be our strengths for our group’s accomplishment. To build a firmer foundation for sustainable success and competitive growth in this highly hard-hitting industry, I believe, we need to be even more ambitious to reach our targets - to be a good corporate citizen on top of being successful and innovative business operators. I can see a satisfying recovery for this quarter in both business viability and operational sustainability. However, we will continue to work tirelessly putting efforts in being a part of the positive contribution to the people, community and society as a whole.” Mr. Chansiri concluded.
The Board of Directors resolved to approve an allocation of net profit gained from the operating results during the first half of the year at THB1.2 per share with the ex-dividend date on August 25th, 2014 and the payment date on September 10th, 2014.
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