Thai Union Frozen Food Products today (1 March) posted a 14% drop in net profit for fiscal 2010 as higher raw material costs, debt financing and currency exchange weighed on the group’s result.
The Thai canned and frozen seafood manufacturer said net profit dropped to THB2.87bn (US$93.9m). Stripping out the impact of currency exchange, sales rose 13%. However, the appreciation of the Thai baht meant sales grew only 4% to THB71.51bn, Thai Union said.
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The company said profits were further hit by higher debt financing costs following Thai Union’s acquisition of MW Brands last year coupled with rising commodity prices.
Nevertheless, Thai Union president Thiraphong Chansiri remained upbeat on the group’s prospects next year. “Into 2011, there are nevertheless evident signs of a recovery. These provide the management confidence that greater opportunities are ahead and a more promising business outlook is taking shape. Benefits of synergies between TUF and MW Brands will be a factor to watch in 2011,” he commented.
