Thai Union Group, maker of the John West canned tuna brand, reported a 4.4% increase in first-half net profit driven by growth in sales, a reduction in income tax expenses, a rise in its Red Lobster investment and gains in foreign exchange.
Net income for Thailand’s seafood giant came in at THB2.9bn (US$87m) in the six months through June from a year earlier, the company said in its earnings results today (7 August).
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However, Thai Union’s EBIT fell 7.7% to THB4.42bn. The company said it faced challenges in the second quarter from a continued rise in raw material prices and the appreciation of the Thai baht against major currencies such as the British pound, euro and US dollar.
Sales climbed 1% to THB66.2bn, which in dollar terms represented a 3.6% increase to $1.9bn.
First-half sales, general and administrative expenses as a ratio to sales was 9.8%, below its full-year target of 10%. The company’s income tax expense decreased by almost 74% to THB221m, contributable to a lower-than-normal tax payment in the first two quarters.
Since the end of the first half, Thai Union has struck a deal with Alibaba Group to market chilled and frozen seafood on the Chinese retailer’s Tmall platform and offloaded its fishing fleet.
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By GlobalData
