Thai Union Group Plc (TU) reported a 46.5% year-on-year increase in first-quarter net profit to 1.27 billion baht, citing strong performance of its frozen and pet products.
"The first-quarter performance was a positive start to the year," said Thiraphong Chansiri, chief executive of Thai Union. "Thanks to continued operational efficiencies and a margin recovery, we're starting to see the flow-on benefits, with a recovery in our overall performance and operations."
The company's gross profit rose 29.3% year-on-year to 4.38 billion baht. Gross profit margin recovered from 11.6% in the first quarter last year to 14.9%. This was mainly attributed to stable raw material prices along with stronger performance from Thai Union's ambient seafood and PetCare Co's business.
Operating profit increased to 1.02 billion baht and consolidated sales were 29.4 billion baht. Excluding the impact of foreign exchange, organic sales growth improved to 2.3%, driven by frozen and pet products.
Sales from frozen and chilled seafood rose to 11.5 billion baht, up 3.4% year-on-year, due to a surge in frozen seafood sales in the US. Pet and value-added product sales grew to 4.38 billion baht, up 7.5% year-on-year.
Sales contributions from firm brands remained stable at 42% in the first quarter. The US remained the largest market with 40.4% of total sales, followed by Europe (27.9%), Thailand (13.1%), Japan (4.7%) and elsewhere (13.9%).
Mr Thiraphong said the company during the first quarter made progress in its sustainability strategy, SeaChange, and joined the World Wildlife Fund in releasing a report, "Sourcing Transparency: Wild Caught Fish and Shellfish".
The duo were recognised in February, winning a Sustainable Supply Chain leader award for showing "how partnerships can help drive change on a global scale".
Thai Union has been part of the Dow Jones Sustainability Emerging Markets Index since 2014.
TU shares closed yesterday on the Stock Exchange of Thailand at 18.70 baht, up 10 satang, in trade worth 447.9 million baht.
