Thai Union Group PCL. reported first quarter sales of THB 31,103 million, an increase of 5.9% year-on-year and its best first-quarter sales performance in three years.
According to the John West owners first quarter results, 'growth in sales was driven by a strong performance from the ambient business with a 24.5% increase in sales volume to 99,599 tons, as consumers around the world stocked up on shelf-stable products in response to COVID-19.'
Cash flow in the first quarter exceeded THB 1 billion, reflecting strong cash flow generation and cash conversion ability, the seafood giant said.
The company outlined that it recorded an operating profit of THB 1,529 million, a 49.9% rise, reflecting the company’s focus on cost controls and profitability.
“The world changed dramatically in the first quarter with the impact of COVID-19 felt all around the world," noted Thiraphong Chansiri, CEO at Thai Union Group.
"Throughout this pandemic, Thai Union has continued to focus on the health and safety of our people and our business operations so that we can continue to deliver our products to our customers and consumers around the world in confidence and safety,” he added.
Thai Union’s SG&A to sales ratio was at 11.3% compared to 11.4% during the first quarter in previous year, its results showed,
However, net profit was 20.2% lower year-on-year mainly because of the impact of COVID-19 on strategic investments and foreign exchange loss.
The sales contribution from Thai Union’s ambient business grew 16.2% from the same period last year to THB 15,631 million.
The frozen, chilled seafood and related business saw a drop in sales volumes of only 1.1% to 61,179 tons while sales were down 5.1% to THB 10,944 million, largely due to the impact of COVID-19 on its hospitality and F&B channels.
The sales of PetCare, value-added and other business increased by 3.3% to THB 4,528 million, which the company said was 'due to a continued focus on higher margin products'.
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