Thai Union Frozen (TUF) TUF.BK, Thailand’s biggest canned tuna exporter, has reported more than doubled earnings in the third quarter of 2008 due to higher sales. It is said that it would aim for a 12 percent rise in dollar revenue in 2009. The company told that it has recorded a better-than-expected net profit for the July-September quarter of 912 million baht ($26.1 million) and a nine-month net profit of 1.89 billion baht, up 37 percent.
According to the report of the company it made $1.54 billion of sales for the first nine months and was confident it would achieve full-year sales of $2.0 billion. Thiraphong Chansiri told that the company aims for a 12 percent rise in dollar sales next year because production volume is targeted to grow 10 percent. He also said that previously that net profit for the year should rise at least 10 percent from last year’s 1.82 billion baht.
The company informed that it would boost production by 10 percent in 2009 from this year’s 350,000 tonnes and expected demand to rise due to lower tuna prices. Average tuna prices would fall to $1,300-$1,400 per tonne next year from an average $1,700 this year. Thiraphong told that TUF could spend less than 1.2 billion baht, below its annual target, next year as it delayed new acquisitions because of the global financial crisis.
Thiraphong informed that the company is ready to invest less than 1.2 billion baht next year. The investment will be mainly on capacity expansion and for new product launches. The company had earmarked annual capital expenditure of 1.2-1.5 billion baht for expansion and acquisitions. Its gross margin this year would be 14-15 percent, close to last year’s, helped by cost controls. TUF recorded sales of $1.54 billion for the first nine months, with tuna making about up half the total.
