SET-listed Thai Union Group Plc (TU), a global seafood conglomerate, targets a 15% gain in gross profit margin this year driven by manufacturing cost efficiency, new business ventures and product innovations.
"We remain focused on five strategies: negotiating with trading partners for reasonable raw material prices and manufacturing cost efficiency; targeting businesses we invested in in the past and potential businesses in the future; focusing on new businesses in new markets; product innovations; and sustainability," said TU investor relations manager Bunlung Waiyanont.
"We plan to fully enter the ingredients business this year, with a fish oil extraction plant in Germany set to operate this year as well," he said.
The company aims for 5% growth in sales revenue and 15% growth in gross profit margin.
It set capital expenditure at 4.8 billion baht, with some allocated for repair and new business expansion, while it is maintaining its dividend payment at above 50% of net profit.
The firm bought a 25% share in Thammachart Seafood Retail Co, the largest salmon wholesaler and retailer in Thailand, and acquired a 45% share in the largest canned fish business in Russia.
Mr Bunlung said the company will drive forward its planned synergy of recently acquired and existing businesses, while eyeing new investment opportunities.
Thai Union also plans to penetrate new markets such as China through Thai Union China Co, which was established in 2017 and saw rapid growth the past two years.
TU plans to roll out new products and has a policy to support innovation in the food industry by providing support to government-funded startups and acting as an incubator for food startups.
Foreign exchange rate remains a key factor affecting consolidated sales revenue as the US dollar accounted for 60% of total sales, followed by the euro at 26-27%, while the baht represents 11%, he said.
TU shares closed yesterday on the SET at 18.90 baht, up 10 satang, in trade worth 243 million baht.