Thai Union Group PCL is one of the world’s largest seafood companies who deliver seafood products with innovation, high product quality, delicious taste, and health benefits to consumers for more than 45 years. The company owns a portfolio of leading brands in various markets around the world and has a global sourcing, production, and distribution network. Thai Union’s core businesses include Ambient seafood, Frozen and Chilled seafood and related business, and PetCare, Value-added, and other businesses. With corporate sustainability goals, Thai Union has a long-term commitment to be the most trusted seafood leader and conservation of natural resources for future generations.
Although there have been pressures from the global economic crisis including record-high inflation in many countries, rising interest rates, and challenges in the supply chain, Business diversification continues to be the cornerstone of our ongoing growth path, reflected in our results in 2Q22, which remained robust despite the impact of two one-off items. Moreover, the company has revised revenue growth guidance from previously 7-8% to 10-12%, driven by the strong growth of core businesses. Thai Union also declared an interim dividend payment of THB 0.40 per share.
| 6M22 | 6M21 | 2021 | 2020 |
|---|
| Revenues | 75,720.28 | 67,394.85 | 141,858.21 | 134,111.99 |
| Expenses | 71,886.38 | 62,612.59 | 132,791.83 | 124,581.06 |
| Net Profit (Loss) | 3,369.36 | 4,145.76 | 8,013.00 | 6,246.09 |
| Assets | 171,414.86 | 153,870.41 | 166,604.04 | 144,574.68 |
| Liabilities | 108,546.89 | 95,644.40 | 104,390.64 | 88,838.02 |
| Shareholders' Equity | 60,021.82 | 56,526.62 | 59,319.07 | 52,185.26 |
| Operating | -1,360.41 | 3,129.33 | 6,292.03 | 13,432.41 |
| Investing | -1,370.05 | -2,379.90 | -8,103.69 | -3,735.59 |
| Financing | -4,368.81 | -805.90 | 4,582.91 | -8,203.31 |
| EPS (Baht) | 0.69 | 0.86 | 1.66 | 1.26 |
| GP Margin (%) | 17.20 | 18.37 | 18.24 | 17.69 |
| NP Margin (%) | 4.48 | 6.19 | 5.68 | 4.72 |
| D/E Ratio (x) | 1.73 | 1.64 | 1.68 | 1.59 |
| ROE (%) | 13.83 | 16.19 | 16.09 | 14.08 |
| ROA (%) | 5.54 | 7.16 | 6.90 | 6.29 |
The company reported record high sales of THB 38,946mn in 2Q22, an increase of 8.5% YoY, driven mainly by higher selling prices, increased demand and, and FX. Gross profit was THB 6,584mn in 2Q22 with Gross profit margin at 16.9%. Adjusted net profit marked at THB 2,243mn, declined 8.4% YoY, excluded impact from two one-off items (1) THB 424mn (after tax) change in fair value of Red Lobster’s preferred shares and (2) THB 195mn (after tax) restructuring costs related to the closure of one Rügen Fisch plant.
• With a global portfolio management strategy, the company sold MerAlliance assets in Poland to a Polish seafood company, Dobry Pracownik in May 2022. And, the company announced a plan to transfer production from Lübeck to Sassnitz, Germany, to improve production efficiency as we continue to optimize our manufacturing footprint (within 2Q 2023)
• Thai Union Ingredients invested (~THB 270mn) in Mara Renewables, a leading Canadian algae oil producer, to explore the opportunity to expand our ingredient business to algae oil.
• i-Tail Corporation (ITC), a leading producer of premium PetCare products, submitted a filing to the SEC on July 5, 2022.
Thai Union’s Strategy 2025 builds on our determination to provide healthy and tasty products to consumers, which consists of six elements to create long-term value: Growing the Core, Diversifying along our Value Chains, Exploring New Horizons, Future-proofing our Operations, Continuing our Sustainability Leadership, and Wellbeing and Capability of our Employees. This will help us drive business growth and sustain profitability and shift and future-proof our group portfolio.
Thai Union has a long-term commitment to “Healthy Living, Healthy Oceans”, with a focus on 4 programs under an integrated strategic plan of initiatives, SeaChange®, including Safe & Legal Labor, Responsible Sourcing, Responsible Operations, and People & Communities. Moreover, the company is one of the participants of the United Nations Global Compact and the co-founder of the International Seafood Sustainability Foundation (ISSF) in 2015. Thai Union published the 2021 Sustainability Report in June 2020, which includes details of Blue Finance and completed our first-ever full greenhouse gas inventory, including scope 3 emissions. Furthermore, we have a significant revision to SeaChange® and plan to announce new 2030 goals and introduce new science-based targets by 2022. We also published our first-ever report for Task Force on Climate-Related Financial Disclosures (TCFD) and officially listed on the Science-Based Target Initiatives (SBTi) website as “committed”, to submitting the targets soon.
The company continues to embed a risk culture in our business and operations at all levels, starting by making it part of organizational culture, policy, and structures, with a risk management framework in accordance with COSO ERM, as well as monitoring risk indicators and performance on regular basis, according to the risk management plan, to mitigate the impact and/or the likelihood of risks. The key risks in the first half of 2022 are global supply chain challenges including freight prices, the rising inflation which led to the increasing price of raw materials, packaging, and vegetable oil, as well as the rising interest rate. Nevertheless, the company has the solutions in place to manage and mitigate the impacts of the risks and continue to monitor the situation closely.
- Dow Jones Sustainability Indices (DJSI)
- FTSE4Good Emerging Index
- Ranked No. 1 in the Seafood Stewardship Index (SSI) for the work towards United Nations Sustainable Development Goals (SDGs)
- Certified to be a member of the Private Sector Collective Action Coalition Against Corruption (CAC)
- Sustainability Disclosure Award 2021 from Thaipat Institute
- Gold Class Distinction in the S&P Global Sustainability Yearbook 2021
- Outstanding Company in Thailand Top Company Awards by Business+ Magazine
- Best CEO: Top 3 (sell-side) / Best CFO: Top 2 (sell-side) and Top 3 (combined)/ Best ESG: Top 3 (sell-side) in 2022 Asia (ex-Japan) Executive Team rankings by Institutional Investor
- Treasurer of the Year by The Asset Triple A Awards 2022
| as of 30/06/22 | TU | FOOD | SET |
|---|---|---|---|
| P/E (X) | 10.01 | 37.54 | 18.46 |
| P/BV (X) | 1.29 | 1.98 | 1.65 |
| Dividend yield (%) | 5.56 | 2.28 | 2.74 |
| 30/06/22 | 30/12/21 | 30/12/20 | |
|---|---|---|---|
| Market Cap (MB) | 81,598.04 | 93,050.40 | 64,896.69 |
| Price (B/Share) | 17.10 | 19.50 | 13.60 |
| P/E (X) | 10.01 | 12.04 | 10.83 |
| P/BV (X) | 1.29 | 1.59 | 1.25 |
A- with stable outlook by JCR