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Thai Union Group PCL today reported its 2022 financial results with record revenues of THB 155 600 million (€ 4 232 million / US$ 4 520 million), reflecting a 10.3% increase in sales. Gross profit grew by 5.8% to THB 27 200 million (€ 739 million / US$ 790 million), although net profit fell by 10.9% to THB 7 100 million (€ 193 million / US$ 206 million). According to the company release, the strong growth was driven mainly by two businesses, PetCare, and ambient seafood.
In terms of geographic diversity, sales in North America – USA and Canada – accounted for 44% of total revenues, followed by 26% from Europe, 11% from Thailand, and 19% from other countries. Alongside the results for the year, Thai Union also presented the results for the Q4 2022 where sales increased by 2.9 % to THB 39 600 million (€ 1 076 million / US$ 1 150 million), and quarterly operating profit increased by 20.6 % to THB 2 400 million (€ 65 million / US$ 69 million).
Ambient seafood business led sales
Ambient seafood products led the Thai Union’s sales in 2022. They grew by 12.8% year-on-year, mainly thanks to higher selling prices and continued strong demand, especially in Asia and the US where the launch of new and innovative products attracted consumers. Ambient seafood accounted for 43 % of total revenues, followed by frozen and chilled seafood at 36 %; PetCare – fast-growing and increasingly important to Thai Union’s operations -, at 14 % (up from 10 % in 2021); and value-added and other businesses at 7 %.
“Amidst unforeseen global economic challenges such as high inflation and volatile foreign exchange, Thai Union was able to deliver a strong performance and record sales. Our core businesses remain a key focus for Thai Union, but we continue to further diversify our portfolio of products to appeal to new customers across Asia, Europe and North America”, said Thiraphong Chansiri, CEO at Thai Union. “We also continue to develop value-enhancing businesses across our ingredients, supplements and alternative protein units, where we are unlocking new and innovative products that will be essential to our future growth”, he continued.
Investing in sustainability
Thai Union said that during 2022 it continued to pursue “opportunities that offer potential strong growth for the company”. This included a CAD$ 10 million (€ 6.95 million / US$ 7.42 million) investment in one of the world’s leading producers of sustainably grown algae-based bioproducts, Mara Renewables Corporation. The company, which is highly committed to sustainability issues – it was ranked No. 1 food industry worldwide on Dow Jones Sustainability Index (DJSI) in 2022 – has pursued this investment strategy in 2023. In January, it announced that its Corporate Venture Capital Fund had joined other strategic and financial partners to back French startup Algama, a leading microalgae ingredient company.
“Inflation will remain a major challenge across all the markets we operate in during 2023“, stated Chansiri. “However, I am confident that management’s focus on our long-term strategies, fiscal discipline and business diversification will ensure we maintain strong growth momentum well into the future. Thai Union is aiming for 2023 sales growth of around 5-6 percent year-on-year and will scale up capital expenditure to THB 6-6.5 billion”, concluded Thai Union’s CEO.
About Thai Union Group
Thai Union Group PCL is a world leader in seafood. The company is considered one of the world’s leading seafood producers and is one of the largest producers of non-perishable tuna products, with annual sales exceeding THB 155 600 million (€ 4 232 million / US$ 4 520 million, and a global workforce of more than 44,000 people. As a company committed to ‘Healthy Living, Healthy Oceans’, Thai Union is a proud member of the United Nations Global Compact, a founding participating company of the International Seafood Sustainability Foundation (ISSF), and current Chair of Seafood Business for Ocean Stewardship (SeaBOS).
Thai Union’s continued work through its SeaChange® sustainability strategy has been recognized by both the Food Products Industry Index of the Dow Jones Sustainability Indices – in 2022 ranked Nº1 and listed for the ninth consecutive year -, and the FTSE4Good Emerging Index where it was named for the sixth straight year in 2021.
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