TU Delivers All-Time High Quarterly Sales as Net Profit Soars 30% in 3Q22

Thai Union Group Public Company Limited (SET: TU) has announced its 3Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q22 3Q21
Net Profit (Loss)
Million Baht
2,530.48 1,936.79
Earning Per Share
0.5300 0.4000
% Change 30.65
9 Months 2022 2021
Net Profit (Loss)
Million Baht
5,899.84 6,082.55
Earning Per Share (Baht) 1.2200 1.2600
% Change -3.00

TU reported an increase of net profit by 30.65% in the quarter, coming in at THB2,530 million, compared to THB1,936 million recorded in 3Q21. Earnings per share was THB0.53 for the quarter, compared to THB0.40 from the same quarter last year.

An increase in net profit was mainly from strong operating profit from volume growth, favorable FX, and category mix, as well as positive impacts from FX gains and higher tax credit of THB 136 million in 3Q22. This was partially offset by higher share of loss from Red Lobster and lower other income from Red Lobster’s preferred shares fair value adjustment. Net profit margin (NPM) was solid at 6.2%.

The company delivered an all-time high quarterly sales in 3Q22 from higher selling prices, volume growth, and favorable FX. Quarterly sales were THB 41 billion for the first time ever, from all core businesses, PetCare & value-added (+55.9% YoY) and ambient seafood (+13.6% YoY), while frozen and chilled seafood remained stable, despite market normalization in the U.S.

Gross profit margin (GPM) was strong at 18.2%, in line with last year’s record performance.

3Q22 free cash flow (FCF) turned positive, driven by strong EBITDA, partially offset by a temporary impact from the increase in net working capital due to higher inventory, high trade receivables from record sales, and 1H22 interim dividend payment. TU’s end-3Q22 net D/E ratio was at 1.13x.