Thai Union said sales boosted by rising fish prices

Thai Union said sales boosted by rising fish prices

Seafood company Thai Union Group has booked increased first-half sales, boosted by its recent acquisition of German canned seafood processor Rugen Fisch and raw material prices for skipjack and salmon, but the company's profits fell year-on-year. 

Thai Union booked net sales of THB65.70bn (US$1.8bn) up nearly 11% year-on-year. However, its net profit fell by 2.4% to THB2.75bn (US$79m) for the first half of the year.

Thai Union said the fall in profit resulted from a rise in selling, general and administrative expenses and increased income tax, as well as a "higher earnings contribution from overseas subsidiaries where they generally have a higher tax bracket than Thailand's operation".

"The sales contribution from Thai Union's brands remained stable at 43% in the first half of 2016, with the balance coming from the company's private label sales," Thai Union said. 

Other incomes (including share of income from investment in associates) "increased substantially" in the first half of 2016 by 40.1% to THB704m.

Thai Union also confirmed that it completed its acquisition of a 40% equity stake in Avanti Frozen Foods Private Limited from India's Avanti Feeds last month

Meanwhile, Thai Union said it had entered into an asset purchase agreement and completed the acquisition of assets of Canadian lobster processor Les Pecheries de Chez Nous in June. The total consideration of acquiring assets in the New Brunswick processor was CAD15.3m (US$11.6m). 

"The acquisition will allow the company secure, control product quality and to expand product offerings to the consumer," Thai Union said. "In addition, it will enhance us to gain more expertise, business transparency as well as stronger integration footprint in North Atlantic lobster category."