Thai Union, one of the world's biggest seafood companies, posted stagnate earnings in the third quarter as the shelf-stable food segment normalized and supply chain disruptions raised costs.
The company recorded a 2.7 percent decrease in earnings before interest, tax, depreciation and amortization to THB 3.8 billion (€99.4 million/$115 million). Revenues rose just 2.2 percent year on year to THB 35.5 million (€928,142/$1.1 million).
While its core business remained strong, the company couldn't quite balance the impact of pandemic-related supply chain disruptions and an 8.8 percent fall in the company's shelf-stable seafood sales.
On the other hand, frozen and chilled seafood sales rose 11 percent, with PetCare and its value-added business experiencing an 11.4 percent boost.
The movement of the Thai Baht against key currencies also benefited sales in the quarter.
The Bangkok-based giant has had an eventful quarter. It added to its pet food portfolio by investing in insect-based pet treats startup Orgafeed, as well as acquiring a 10 percent or THB 3 billion (€76.8 million/$89.9 million) stake in R&B Food Supply, Thailand’s leading food ingredients company specializing in flavors, colors and coating.
It also entered into a joint venture with packaging firm Starflex to create a new THB 250 million (€6.3 million/$7.4 million) company for the manufacturing and distribution of flexible packaging and other related business, including development of new packaging and products.