Thai Union books mixed Q1 results in “challenging environment”

Thai Union Group has booked an improvement in its bottom line in the first quarter of 2017 but the seafood group reported a slump in its operating profits and muted sales growth.

The Petit Navire and John West owner said its net profit for the period to 31 March increased 19.3% to THB1.46bn (US$42.1m).

Thai Union pointed to lower tax expenses from “a weak business performance” in Europe, gains from foreign exchange, as well as interest and equity income from its investment in US-based seafood restaurant operator Red Lobster in October.

However, Thai Union’s first-quarter operating profit fell 45% to THB881m amid higher tuna and shrimp prices. The company said it managed to pass on higher salmon prices

Net sales inched up 0.7% to THB31.42bn year-on-year, with Thai Union’s top line dampened by the strength of the Thai baht against European currencies. Measured in US dollars, Thai Union said its sales rose 2.8% to $895m.