Thai Union Group Public Company Limited or TU reported operating results for the first quarter of 2024 which continued to grow with sales of 33,220 million baht, an increase of 1.7 percent, with the gross profit margin increasing to 17.3 percent of the food business group’s Growth frozen sea. Pet food and value-added products business group and other businesses, while the net profit margin after adjusting profit sharing and tax benefits from Red Lobster has the ability to grow very well, up to 53.9 percent or 1,200 million baht from the same period of the previous quarter The strong operating performance was a result of a recovery in product demand in the main business group, namely the tinned food business. Pet food and value-added products business group and other businesses In addition, Thai Union continues its third financial management share buyback program as planned. It also has a good debt-to-equity ratio of 0.82 times at the end of the first quarter. It reflects the company’s strong financial position.
Mr. Teeraphong Chansiri, CEO of Thai Union Group Public Company Limited, said, “Thai Union focuses on our core businesses in the canned food business group, frozen seafood business group. and especially the pet food business group which has experienced significant growth. This is an important part of driving the business back to growth while generating strong profits and added value In 2023, Thai Union has shown that we can cope and adapt to the challenging economic situation quickly and well Consequently, the business started to recover from the last quarter of last year. And we are confident that moving forward this time will be a positive factor that will ultimately lead to sustainable and strong growth for the Union of Thailand.”
For operating results by business group in the first quarter, it was found that the canned food business group There was an increase in sales from the same period last year of 12.7 percent or 17,156 million baht, which represents an increase in sales volume of 12.7 per hundred, the highest in history. This is as a result of the demand for the product expanding in all regions. Especially in the Middle East, Europe and the United States are positive factors causing growth. Meanwhile, the gross profit ratio of the canned food business has fallen to 16.6 percent due to an increase in the price of raw materials in production. As for the pet food business group Sales increased by 13.2 percent from the same period last year to 3,955 million baht due to the adoption of strategies to increase the share of premium product sales and product price improvements. As a result, the gross profit ratio grew strongly to 25.7 per cent, the highest expansion since the second quarter of 2022.
In terms of the value added products and other businesses, sales in the first quarter reached a record high of 29.5 percent, and compared to the first quarter of last year, the growth rate improved by 10.8 percent, with growth supporting factors coming of having a wide variety of products. The frozen seafood business group Sales fell 17.7 per cent from the same period last year. Because of the slow demand for products in the United States. along with the company There was a reduction in the size of business operations in the United States. Thai Union’s business in the United States and Canada accounted for 38.6 percent of total revenue, followed by Europe at 29.6 percent, Thailand at 10.9 percent and others at 20.9 percent.
In addition, when comparing the company’s net profit In the last quarter with adjusted net profit in the same period in 2023, it is considered a good and strong expansion. The important factor comes from the overall picture of all business groups growing. This is despite lower foreign exchange profits. Less profit share including higher financial costs And there are more tax costs.
During the last quarter, Japan Credit Rating or JCR, a leading credit rating company in Japan, raised the credit rating of the Thai Union’s long-term foreign currency debt instruments from A- to A The credit outlook is stable. It also ranks in the same position as Thailand’s credit rating.
At the same time, the company remains committed to strengthening its financial position. As a result, Thai Union has a good debt-to-equity ratio of 0.82 times at the end of the first quarter of 2024, which is lower than the level that the company has set. And at the beginning of 2024, the Thai Union decided to approve the third financial management share buyback project in an amount not exceeding 3,600 million baht and not exceeding 200 million shares to demonstrate the company’s strong financial position and build confidence to shareholders Including helping to improve earnings per share, at the end of March 2024, the company has repurchased 86 million shares and aims to be able to complete it as scheduled in June 2024.
In addition, Thai Union continues to promote its sustainability mission. In the first quarter, success was announced. A project to reduce the release of waste water to the public to zero (Zero Waste Water Discharge) as a seafood factory model that has created standards for waste water management in the system with 100 percent success At the same time, we have also collaborated with A global nature conservation organization, The Nature Conservancy (TNC), and Ahold Delhaize USA, a global retail group. Launch a pilot project to reduce the amount of greenhouse gas emissions produced from the shrimp farming process. Aiming to create progressive and sustainable change in aquaculture farming, including the Thai Union Feed Mill Public Company Limited, a subsidiary Received certification of world-class animal feed standards by the Aquaculture Stewardship Council or ASC, the first in Asia . Creating a new standard in sustainable animal feed production for the region.
“I am confident that the corporate strategic plan for 2030 will help prepare and create sustainable growth in the long term. Caring for the good health of people and pets along with taking care of the world. From the current goals that the Union of Thailand is trying to create It is considered that “having good health and abundance of oceans or Healthy Living, Healthy Oceans” reinforces our commitment and attention to stimulate responsible and sustainable growth,” said Mr Teeraphong.
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