TUF’s first-half profits jump 28%

B>Bangkok (August 15, 2001) - Thai Union Frozen Products Plc (TUF), the country's largest processor and exporter of frozen and canned seafood, yesterday reported 787.6 million baht (US$ 17.63 million) in consolidated profit for the first six months of this year, an increase of 28 per cent from the same period last year.

President Thiraphong Chansiri said consolidated sales in the first half rose by 102 per cent to 16.31 billion baht.

He said the figure excluded U.S. domestic sales of the company's Chicken of the Sea brand, in which TUF increased its ownership from 50 to 100 per cent last year.

In the second quarter alone, net profit was 311.2 million baht, up 29 per cent year-on-year, on revenues of 8.33 billion baht in the second quarter, up 109 per cent from a year earlier.

Earnings per share rose to 2.08 baht from 1.61 baht in the same period last year.

Thiraphong said the current price of tuna in international markets remained firm at around $ 700-750 a ton, compared with $ 420-470 a year ago.

The depreciation of the baht over the past year, from 38 to 45 to the greenback, also gave the company a revenue boost.

Broken down by product, frozen tuna loin remains TUF's major income generator, accounting for 45 per cent of total sales, followed by frozen shrimps (25 per cent), canned pet food (12 per cent) and domestic products (8 per cent).

The United States and Japan remain TUF's major markets with 29 and 27 per cent of total sales, respectively.

He said the recent shutdown of TUF's cannery in San Pedro, California was aimed at restructuring its production bases and cutting costs, with estimated savings up to $ 2.5 million a year.

The production capacity from the closed plant will be mostly relocated to the American Samoa plant, which was regarded as the lowest-cost tuna production base in U.S. territory. The plant also enjoys import tax exemptions in the U.S. market.

Source : Bangkok Post