According to a statement issued by TUF a weaker baht and strong sales would boost its 2008 net profit and shield the firm from rising tuna costs. It is said that TUF generates 90 percent of its sales from overseas markets, expected its dollar revenues to rise by 50 percent to $3.0 billion by 2012 as it expanded into new markets.
TUF President Thiraphong Chansiri told that the company is expected net profit to grow at least 10 percent this year if the baht remained at current levels which would be favourable for exports. TUF also planned to invest in overseas expansions, including spending $10 million on a joint venture tuna plant in Papua New Guinea which has export privileges to Europe.
In an exclusive talk Chansiri informed that the company focus on a growth strategy and is aiming for sales to hit $3 billion in four years or by 2012. TUF, whose key “Chicken of the Sea” brand posted strong sales in the U.S. market in the first half, recorded sales of $996 million for the period, with tuna making up half the total and frozen shrimp about 19 percent.
In 2008 TUF has target to hit sales of $2 billion. Last year the company reported a net profit of 1.82 billion baht in 2007 on sales of $1.61 billion, equivalent to 55 billion baht. It is said that the company might issue bonds later this year to refinance some of its 6.0 billion baht short-term debt due to favourable bond market. The baht has fallen 1.2 percent against the dollar this year, improving the health of most Thai exporters.
