Thai Union Reports Lower Earnings in 1Q22 despite Quarterly Sales Record

Thai Union Group Public Company Limited (SET: TU) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q22 1Q21
Net Profit (Loss)
Million Baht
1,745.53 1,802.89
Earning Per Share (Baht) 0.36 0.37
% Change -3.2

TU reported 1Q22 net profit at THB1.7 billion, dropping -3.2% YoY. The decrease was due to strong core operations with top line and gross margin growth being pressured by ongoing impacts of the pandemic and supply chain challenges, FX loss and significantly challenged Red Lobster operations. This was partially offset by higher other income and tax credit. Net profit margin (NPM) was healthy at 4.8% vs 5.8% in 1Q21.

Meanwhile, delivered record-high quarterly sales of THB36.3 billion in 1Q22, boosted by increased volume, favorable prices and FX. This was driven by growing ambient seafood (+14.3% YoY), continued recovery of frozen and chilled seafood (+14.2.% YoY), rising demand in PetCare & value-added (+27.2% YoY), and favorable FX.

1Q22 quarterly gross profit was at an all-time high for a first quarter at THB6.4 billion (+15.4% YoY), driven by growth in all businesses, mainly from the price increasing strategy and favorable volumes. Gross profit margin (GPM) was robust at 17.5%, compared to 17.7% in 1Q21, despite higher raw material prices and freight costs.