Thai Union enjoys 17% profit surge

Thai Union enjoys 17% profit surge

SET-listed Thai Union Group Plc (TU), the world's biggest exporter of canned tuna, posted a 17% year-on-year rise in second-quarter net profit, crediting record sales at a time when the company has managed to cut financial costs.

It had its highest consolidated sales ever of 34.4 billion baht, up 12.4% from the same period of last year, with a net profit of 1.52 billion.

TU's sales in the US played an important role and accounted for 38.6% of sales.

The domestic market accounted for 7.9% of sales, while the EU contributed 34.1%, widening from 29.4% in full-year 2015. Japan sales contributed 6.1% of total sales.

"This quarter clearly shows that our efforts to drive efficiency in our operations and financing are working," said president and chief executive Thiraphong Chansiri. "Profit growth is being delivered even in a challenging market for raw materials and difficult economic conditions in various markets around the world."

In the second quarter of 2016, earnings before interest, taxes, depreciation and amortisation totalled 3.18 billion baht, up 11.9% on year due to improved operations and lower finance costs because of continued debt repayments.

TU has issued debentures worth 10 billion baht, its biggest tranche ever, to refinance the debts of its US subsidiaries.

Its operating profit was 2.06 billion baht, down 6.3% on year. Gross profit improved by 4.5%, while gross profit margin was 15.8%, down slightly from 16.9%. A rise in raw material costs contributed to the slightly weaker margin.

TU shares closed yesterday on the Stock Exchange of Thailand at 21.90 baht, up 20 satang, in trade worth 158 million baht.

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