Thai Union Group PCL reported record sales and net profit during the third quarter, driven by strong core businesses, favorable foreign exchange, and continued growth in PetCare and value-added operations. Revenue during the July-September period reached THB 40.7 billion. A 14.7% increase from a year earlier, while net profit for the period was up 30.7% year-on-year to THB 2.5 billion.
On the other hand, for the first nine months of 2022, the company recorded sales of THB 116.0 billion, a 13.1% increase year-over-year, while the gross profit was up 8.7% to THB 20.3 billion. The gross profit margin was at 17.5 percent despite an increase in key material prices.
While inflationary pressures during the quarter continued across all markets where Thai Union operates, the company was able to limit the impact through price negotiations with customers, hedging of key materials and foreign exchange, and strong inventory management.
The continued diversification of the business also contributed to the positive result, along with the focus on a healthy gross margin. During the quarter, sales from the ambient seafood business grew 13.6% to THB 17.0 billion year-on-year as demand remained strong.
Sales of frozen & chilled seafood were stable from a year earlier at THB 14.8 billion. PetCare, value-added & other products category was also a key contributor to the quarterly performance, with sales up 55.9% to THB 9.0 billion, supported by strong demand, higher selling prices, and the launch of new products.
"Our third-quarter performance reflects our continued push for greater business diversification, innovation, and a laser focus on cost efficiency," said Thiraphong Chansiri, CEO of Thai Union Group. "Despite the ongoing global economic challenges, we have demonstrated that the emphasis on strengthening our core businesses and expanding into new innovative products can yield results in a period of strong headwinds".
Thai Union reported nine-month sales split into three core business categories, with ambient seafood at 42%, frozen & chilled seafood at 37%, and PetCare, value-added & other products business at 21%.
"At Thai Union, our strategy for business diversification covers not just our product portfolio but also geographical markets. Our global business teams are working across all our markets around the world to ensure that we will continue to grow and deliver healthy products to consumers while also supporting our goal of Healthy Living, Healthy Oceans," said Chansiri.
