Thai Union, one of the world's biggest seafood companies, continued to buck the trend in the fourth quarter of 2020, reaping the benefits of the world's lockdowns and consumers at home with well-stocked cupboards and new pets to look after.

The group posted a 16.3 percent increase in earnings before interest and tax for the fourth quarter of 2020 to THB 2.1 billion (€56.7 million/$69.3 million). Sales for the quarter were up 1.9 percent to THB 33.5 billion (€904.5 million/$1.1 billion) mainly driven by improved ambient seafood sales of 8.8 percent on the back of 6.9 percent volume growth, and an 8 percent increase in sales for Thai Union's PerCare and value added business.

Operating profit rose 26.1 percent to THB 1.9 billion (€51.3 million/$62.7 million), with net profit up 37.9 percent to THB 1.5 billion (€40.5 million/$49.5 million).

Ambient seafood sales rose 8.8 percent to THB 14.4 billion (€388.8 million/$475.2 million) over the quarter, while the PetCare, value-added and other product sales gained 8 percent to THB 5.3 billion (€143.1 million/$174.9 million) compared to the same period last year on the back of increased purchases of shelf-storable products and pet food as people spent more time at home with their families and pets.

However, the frozen and chilled seafood and related business unit saw a slight sales decline of 6.5 percent to THB 13.7 billion (€369.9 million/$452.1 million) in the fourth quarter of the year.

The group also saw a 27 percent rise in earnings before interest, tax, depreciation and amortization of THB 13.0 billion (€351 million/$429 million) for the full year, with sales up 5 percent to THB 132.4 billion (€3.6 billion/$4.4 billion).

“Thai Union Group delivered a strong financial performance in 2020, despite being faced with unprecedented challenges around COVID-19," said Thai Union CEO Thiraphong Chansiri. "Demand for Thai Union’s products grew as consumers cooked more at home as a result of the pandemic, and also shifted their eating habits towards a healthier, more nutritious diet."

The company continued to invest in high margin business such as ingredients and food-tech innovations last year, including UniQTMBONE bone powder, produced by converting tuna bone into a fine, off-white powder with a neutral taste and smell that can be easily used for various types of food, capsules, tablets and as an additive for pet food and pet nutrition. It is being produced at Thai Union Group PLC’s recently-opened bone powder production facility at the Songkla Canning factory in southern Thailand.

The company also continued investing, for the second year, in startups through SPACE-F, the global food tech incubator and accelerator program the company co-founded in 2019. Thai Union has so far invested in six startups and two joint venture companies focusing on innovative, new businesses that respond to the needs of today’s consumers.

PromoBox : Dive deeper with our research reports

Last year the company invested in four startups. Three of the startups, Manna Foods, Alchemy Foodtech and HydroNeo focus on alternative protein, functional food and high technologies for aquaculture farming respectively.

Singapore-based Agritech, the fourth startup, is funding VisVires New Protein. This market is still emerging in Thailand, but it has huge potential as the global market for alternative protein is estimated at $12.8 billion (€10.6 billion) and expected to expand at a compound annual growth rate of 6.8 percent between 2019-2025, said the company.

“While 2020 was without doubt a year of immense challenges, through robust management and the dedication of our workers, Thai Union is a much stronger company today than it was 12 months ago. On the positive side, we reached closure on all the outstanding elements surrounding the US antitrust litigation, and that chapter is now closed and firmly behind us,” Chansiri said.

Finance

'We are stronger today than 12 months ago': Continued lockdowns see Thai Union earnings surge